Keppel Land/ GSH

Keppel Land/ GSH: A consortium led by GSH (51% stake) is buying over Equity Plaza from Keppel Land for $550m. Equity Plaza is on a site with ~74 years bal lease term, and has 97% occupancy. Equity Plaza is within a two-minute walk to the Raffles Place MRT Interchange station and is in close proximity to landmark office developments such as Republic Plaza and Ocean Financial Centre. Equity Plaza underwent major refurbishment works in 2009 and improvement works have been carried out progressively to increase the building’s efficiency Keppel Land is expecting to book $59.5m divestment gain from the sale. On a pro forma basis, Keppel Land’s NTA would have rose to $4.56 instead of $4.52 and EPS would have increased to $0.582 instead of $0.573. Keppel Land is trading at pro forma FY 13 P/NTA of 0.75x