KEY HIGHLIGHTS
- Keppel REIT raises S$886.3m via preferential offering to fund MBFC Tower 3 buy.
- Unitholders get new units at a discount of 96 cents per unit.
- Deal lifts Keppel REIT’s stake in MBFC Tower 3 to two-thirds.
Keppel REIT confirmed it is launching a S$886.3 million preferential offering to fund a major acquisition at Marina Bay.
For unitholders, the numbers — and the timing — matter.
The REIT plans to issue 923.2 million new units, with the offer closing on 9 January. Trading of the new units is expected to start on 19 January.
| Key Detail | What You Need to Know |
|---|---|
| Total funds raised | S$886.3 million |
| New units issued | 923,189,327 units |
| Issue price | 96 cents per unit |
| Entitlement ratio | 23 new units for every 100 existing units |
| Offer opens | 26 December |
| Offer closes | 9 January |
| New units trading | 19 January |
Why Keppel REIT is buying more of MBFC Tower 3
Earlier this month, Keppel REIT announced it will acquire an additional one-third stake in Marina Bay Financial Centre Tower 3 from a subsidiary of Hongkong Land.
The deal value? S$1.453 billion.
Once completed on 31 December, Keppel REIT’s total stake in the Grade A office tower will rise to two-thirds.
The remaining one-third stays with the building’s anchor tenant, DBS Bank — a detail many investors see as a stability plus.
Where the S$886.3 million will go
Keppel REIT broke this down very clearly.
Out of the total amount raised:
- S$875.6 million (98.8%) goes straight into funding the MBFC Tower 3 acquisition
- S$10.7 million (1.2%) covers professional fees and transaction expenses
No surprises here. Most of the money is going exactly where investors expect.
Bridge loan first, preferential offering next
To move quickly, Keppel REIT is using an equity bridge loan of S$886.3 million to complete the acquisition first.
This loan is provided by the joint bookrunners and underwriters of the preferential offering.
Once the offer completes, the net proceeds will be used to repay the bridge loan. Clean and straightforward.
Honestly speaking, this is a very typical structure for large REIT acquisitions in Singapore.
How the market is reacting so far
Keppel REIT units closed at 97.5 cents on 24 December, up 0.52% for the day.
Year to date, the units are already up 12.29%.
Whether the price stays firm after dilution is the key question investors are watching next.
What this means for Singapore investors
For most Singapore investors, this is a familiar trade-off.
You get:
- Exposure to a prime Marina Bay office asset
- A discounted unit price via the preferential offering
- Increased scale in a trophy-grade building
But you also take on:
- Short-term dilution
- Slightly higher balance sheet complexity during the bridge loan period
Worth it or not? That depends on your view of CBD office demand and interest rates going forward.
Frequently Asked Questions
1. Who is eligible for the Keppel REIT preferential offering?
Only entitled unitholders on the record date can subscribe, based on the 23-for-100 entitlement ratio.
2. Is 96 cents a good entry price?
It’s priced at a discount to recent market levels, which helps cushion dilution, but final value depends on post-offer trading.
3. Why is MBFC Tower 3 considered attractive?
It’s a Grade A Marina Bay office with a strong anchor tenant and long-term relevance for Singapore’s financial sector.
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