What happened?
As interest rates continue to trend lower, Singapore REITs have been buying up assets. Recently, Keppel DC REIT acquired a Japan data centre, CapitaLand Ascendas REIT expanded its Singapore portfolio, and CapitaLand Integrated Commercial Trust (CICT) acquired CapitaSpring. It appears that Singapore REITs are pursue growth opportunities through acquisitions once again. Following a recent acquisiiton of a suburban shopping mall in Sydney, Australia, Keppel REIT announced that it will buy a one-third stake in Marina Bay Financial Centre (MBFC) Tower 3. Keppel REIT has also announced a preferential offering to fund the acquisition. Let us dive deeper into the acquisition to find out how it may impact Keppel REIT’s dividend yield.
Keppel REIT buys one-third stake in MBFC Tower 3
Keppel REIT is acquiring another one-third interest in MBFC Tower 3, raising its total stake to two-third, for S$1,453 million. The purchase price represents S$3,268 per square feet and 1.0%…
