KEPPEL LTD. Long 10-year lease with fixed annual rental escalations and options for another 30 years will provide Unitholders income stability and resilience
This follows the announcement on 6 September 2015 when the Manager, through Keppel REIT Australia (Trust), had contracted with Cerberos Pty Ltd to acquire the remaining three retail units at 8 Exhibition Street for A$8.6 million, or approximately S$8.6 million1.
The DPU accretive acquisition gives Keppel REIT strategic control of the office and retail components in 8 Exhibition Street, a freehold landmark development in the heart of Melbourne's central business district.
With its prominent frontage along Flinders Street and Exhibition Street, the three retail units are on a long 10-year lease with fixed annual rental escalations and options for another 30 years to two established F&B outlets. The retail units are part of the historic Herald and Weekly Times building, which includes the 8 Exhibition Street office development. Tenants of the office block include multinational corporations such as Ernst & Young, UBS and the National Australia Bank.
With the strategic addition of the three prime retail units, Keppel REIT now owns a 50% stake in the 8 Exhibition Street office development and two retail units, as well as a 100% stake in the three retail units.
Media Relations | Investor Relations |
Ms Eileen Tan | Ms Grace Chia |
Senior Executive | Senior Manager |
Group Corporate Communications | Investor Relations & Research |
Keppel Corporation Limited | Keppel REIT Management Limited |
Tel: (65) 6413-6430 / (65) 9770-2546 | Tel: (65) 6433 7622 |
Email: eileen.tan@kepcorp.com | Email: grace.chia@keppelreit.com |
1 Based on the exchange rate of A$1 = S$1, as at 30 September 2015.
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