Keppel REIT is selling its strata ownership in the Bugis Junction Towers in Singapore for S$547.5 million, reflecting a 3.0% net property income yield.
The buyer of the property is Village Prop Pte. Ltd., which is a fund managed by U.S.-based alternative investment manager Angelo Gordon & Co. LP, The Business Times reported Oct. 2.
The 15-story Bugis Junction Towers was valued at S$515.0 million as of Aug. 8. It has a net lettable area of about 250,000 square feet with approximately 70 years of leasehold land tenure remaining. The property, with a weighted average lease expiry of 6.2 years as of June 30, is also fully leased to tenants, including Enterprise Singapore, InterContinental Hotels Group PLC and Chinese coworking space operator Ucommune.
Completion of the divestment is expected in the fourth quarter, the Singapore-listed real estate investment trust said, adding that proceeds from the sale will be used for reinvestments and debt reduction initiatives, among other things.
As of Oct. 1, US$1 was equivalent to S$1.39.
