Keppel Reit divests Sydney property for $160 million

Keppel Reit has divested its 100% interest in 77 King Street in Sydney, Australia to ARE Noble Pty Ltd, a wholly-owned subsidiary of Invesco Asia Core Fund for A$160 million (S$160 million), resulting in a divestment gain of A$28 million (S$28 million).

77 King Street is located within Sydney’s CBD, and has 147,000 sq ft of net lettable area over 18 levels of offices and two basement levels of retail space. The sale price is 40% above Keppel Reit’s original purchase price of A$116 million at end 2010, and a 27% premium over the property’s latest valuation of A$126 million.

Following the divestment of 77 King Street, Keppel Reit will still have four premium grade office buildings in Australia, comprising a 50% interest in 8 Chifley Square in Sydney; 275 George Street in Brisbane; the office towe and annex at the Old Treasury Building site in Perth; as well as 8 Exhibition Street, with two retail units and a 100% interest in its three adjoining retail units in Melbourne.