Keppel Land

Keppel Land: Has acquired a 50% stake in a freehold office building, 8 Exhibition Street in Australia, for A$160.2m (S$192.4m). E&Y building. Located in the Melbourne CBD, the 35-storey freehold commercial building has a total NLA of about 480,309 sq ft with 3,304 sf of retail space on the ground floor. The acquisition is immediately DPU (distribution per unit) accretive and is 100% leased to tenants in the financial, aviation, financial advisory, tax and transaction services sectors. It has a weighted average lease expiry of approximately five yrs, and the leases have fixed annual rental escalations, which will provide income certainty and stability to unitholders. Keppel could be purusing for more acqusitions in Australia, as office buildings in SG CBD gets more scarce. They currently have other properties in Sydney, Brisbane and Perth.