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28 November 2005
Keppel Land unlocks further value for shareholders with K-REIT Asia
Delivering on its strategy to unlock value for shareholders, leading property developer in Asia
and one of the largest landlords in Singapore’s Central Business District Keppel Land establishes K-REIT
Asia and injects four of its prime commercial buildings.
Keppel Land Limited (Keppel Land) is establishing a new real estate investment trust to be
known as K-REIT Asia in another step to unlock value for shareholders. With an initial portfolio valued
at $630.7 million, K-REIT Asia will invest primarily in quality commercial real estate and real estate related
assets throughout Asia to achieve stable dividend income and long-term growth in net asset value for investors.
For a start, K-REIT Asia will have in its portfolio four prime office buildings in Keppel Land’s stable of quality
commercial developments : - Keppel Towers
- GE Tower
- Bugis Junction Towers
- Prudential Tower *
* Keppel Land owns approximately 44% of the strata area of Prudential Tower
K-REIT Asia is integral to Keppel Land’s vision of being a premier property multi-national
corporation in Asia which leverages its sterling portfolio of properties, strong network and quality brand.
"The establishment of K-REIT Asia is in line with our focus of unlocking of value for shareholders,
our growth thrusts in the region and growing our fee-based property fund management business.
"Our shareholders will appreciate the stable returns to be generated by K-REIT Asia’s quality portfolio.
The creation of a second listed instrument will also provide them with more choice and flexibility in how they would
like to invest in the Keppel Land group," said Mr Kevin Wong, Managing Director of Keppel Land.
Subject to the approval of shareholders, Keppel Land will distribute approximately about 60% of the issued units
in K-REIT Asia ("K-REIT Units") to shareholders in proportion to their shareholdings in the Company by way of a
distribution in specie. Keppel Land will retain the remaining interest of about 40 percent stake in K-REIT Asia.
Existing Keppel Land shareholders will receive free 200 K-REIT Units for every 1,000 ordinary shares held.
The Distribution In Specie will transfer the benefit of the Company’s entire remaining balance of
about $53.2 million of Section 44A of the Income Tax Act (Cap.134) of Singapore tax credits to shareholders.
Keppel Land will make an application for K-REIT Asia to be listed on the Singapore Exchange by way of an introduction.
The completion of the Distribution In Specie and the commencement of trading of K-REIT Units on the Singapore
Exchange are expected to take place in the first quarter of 2006.
About Keppel Land
Keppel Land is one of the largest listed property companies by total assets on the Singapore Exchange, recognised
for its award-winning premier residential developments and investment-grade offices. It is geographically
diversified in Asia including Singapore, China, Thailand, Vietnam, India, Indonesia, Hongkong, Japan, South
Korea, Malaysia, Philippines, Australia and Myanmar. In Singapore, Keppel Land is perhaps the largest landlord in
the central business district with a premier office portfolio housing multinational corporations, banks and financial
institutions. Keppel Land, together with partners have been awarded the tender to develop Singapore's Business and
Financial Centre. An agreement was signed with the URA on 25 October 2005 for the purchase of the first phase of the
3.55-ha BFC which will comprise a total of 244,000 square metres of prime office, residential and retail space.
The upcoming Integrated Resort in Marina Bay, which Keppel Land is also bidding for, will further complement
this project and enhance its position as a global business and financial hub. The One Raffles Quay development,
which is also developed by the same consortium partners, is adjacent to the BFC and the existing Central Business District at
Raffles Place. On completion in 2006, ORQ will provide approximately 122,000 square metres net lettable area (NLA) of
prime office space. ORQ is currently over 60 per cent pre-committed to leading tenants including ABN Amro, Deutsche Bank and UBS.
Further details on the above are set out in Keppel Land’s announcement dated 28 November 2005 posted on SGXNET.
For more information, please contact Media Relations
Ms Teri Liew
Senior Manager
Group Corporate Communications
Keppel Corporation
Tel : 9686 4038
Investor Relations
Ms Serena Toh
Assistant GM, Research & Investor Relations
Keppel Land
Tel : 64337546
Attachments:
Bugis Junction Towers
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