Keppel Reit divests Sydney property for $160 million
In this article (5)
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.
Questions & Answers
Q.What was the final sale price of the 77 King Street property?
What was the final sale price of the 77 King Street property?
The property was sold for A$160 million, which is equivalent to S$160 million. This figure represents a significant premium over the original purchase price and the latest valuation.
Q.How much profit did Keppel Reit make from this divestment?
How much profit did Keppel Reit make from this divestment?
Keppel Reit achieved a divestment gain of A$28 million from the sale of 77 King Street. This gain reflects the difference between the sale price and the carrying value of the property.
Q.What is the size and composition of the 77 King Street property?
What is the size and composition of the 77 King Street property?
The property has 147,000 sq ft of net lettable area. It consists of 18 levels of office space and two basement levels dedicated to retail units within Sydney’s CBD.
Q.Which properties does Keppel Reit still own in Australia after this sale?
Which properties does Keppel Reit still own in Australia after this sale?
Keppel Reit retains interests in 8 Chifley Square in Sydney, 275 George Street in Brisbane, the Old Treasury Building site in Perth, and 8 Exhibition Street with retail units in Melbourne.
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