Keppel REIT Looks To Dispose Prudential Tower
News: Singapore-based Keppel REIT is seeking to sell its 30-storey Prudential Tower in Singapore's business hub. The real estate investment trust (REIT) has a 92.8% interest in the fully occupied tower, which was valued at SGD490mn (US$383.61mn) as of December 31 2013. Keppel REIT is seeking buyers for older assets to finance potential acquisitions in 2014, according to the company's CEO, Ng Hsueh Ling, who also stated that the REIT may also to buy Keppel Land's stake in the city's Marina Bay Financial Centre Tower 3.
BMI View : We believe the Singaporean commercial real estate sector will continue to show solid growth, boosted by the country's strong fundamentals, including its stable business environment and status as a global financial hub. We highlight growth in tourism as driving the retail real estate sector, as well as the importance of the developed REITs market to the overall commercial real estate sector.