Keppel REIT Unlocks Value with Divestment of Brisbane Property for A$275 M (US$206.66 M)
July 5, 2021- Keppel REIT Management Limited, as manager of Keppel REIT, announced the divestment of the REIT’s 50% interest in 275 George Street in Brisbane, Australia, to Charter Hall Prime Office Fund for an aggregate sale consideration of A$275.0 million. The contract of sale was executed on 30 June 2021. CPOF currently holds the other 50% interest in the property.
275 George Street was acquired by Keppel REIT in 2010 as its first Australian asset. The adjusted consideration of A$264.0 million is 7.8% above the last valuation of A$245.0 million and 59.0% above the original purchase price of A$166.0 million in 2010. Keppel REIT is expected to recognise an estimated accounting gain of A$9.8 million (or approximately S$10.0 million) from the divestment.
Mr Paul Tham, CEO of the Manager, said, “The divestment of 275 George Street is part of our continuing portfolio optimisation strategy, and will provide us with greater financial flexibility as we seek strategic and higher yielding acquisitions to enhance the REIT’s income resilience and deliver sustainable total return to Unitholders.”