Keppel unit and KBS Realty in talks to list REIT of US office assets: sources

Keppel unit and KBS Realty in talks to list REIT of US office assets: sources

By: 
PC Lee
07/09/17, 04:13 pm

SINGAPORE (Sept 7): KBS Realty Advisors, the US real-estate investment firm, is planning to raise about US$500 million ($673 million) via a Singapore initial public offering of some of its US office assets.

According to a Dow Jones report, the Newport Beach, California-based company is in talks with the asset-management arm of Keppel Corp. to form a joint venture that they plan to list as a real-estate investment trust later this year.

The REIT would have an initial portfolio of close to a dozen properties, including office buildings in Seattle, Houston, Denver and other US cities, according to the report.

If the IPO goes ahead, the company would be the second Singapore-listed REIT to give investors in the city-state exposure to US commercial properties.

Last year, Canadian insurer Manulife Financial Corp. raised US$470 million with a Singapore listing of some of its US office properties under Manulife US REIT.

The KBS-Keppel joint venture company could offer an investment yield of close to 7%, according to people close to the matter, in line with what Manulife US REIT pays.

Founded in 1992, KBS Realty invests, manages, develops and sells US commercial real estate on behalf of pension funds, sovereign wealth funds and other institutional investors.

As of June 30, the total value of KBS's real estate and real estate-related investments stood at about US$11 billion. It owns office towers, hotels, apartment complexes and other properties all over America.

Keppel Capital has about US$19 billion worth of assets under management, including real estate, infrastructure and data center assets in various global markets.

Looking beyond quarterly fluctuations in ST Engineering’s growth story

SINGAPORE (Nov 17): ST Engineering’s latest third-quarter results have shown improvements in profitability in three of its four key business units of aerospace, electronics, land systems and marine. In addition to the main four, there is an “others” unit, which lumps together shared services, new ventures and other related activities. It reported a loss of $7.3 million. ST Engineering’s latest third-quarter results have shown improvements in profitability in almost all its business units. The marine unit, on the other hand, suffered a 35% y-o-y drop in earnings to $12.8 millio....
Read More >>

iFAST founder Lim confident China business will be exciting

SINGAPORE (Nov 16): Lim Chung Chun, chairman and CEO of iFAST Corp, believes long-term diversification is the best strategy to grow its assets under administration (AUA). Indeed, the company’s AUA has grown 18.7% y-o-y to hit a new record high of $8.5 billion as at Sept 30. Although the expansion of its unit trust platform into a wealth management solution distributing stocks, bonds, exchange-traded funds (ETFs) and insurance has been pretty successful, its geographical expansion into the mainland Chinese market for his B2B wealth management solutions hasn’t quite hit its marks yet. ....
Read More >>

How IoT in agriculture could present new opportunities for investors

SINGAPORE (Nov 16): Earlier this year, Avarga, formerly known as UPP Holdings, said it was acquiring a 23.08% stake in local start-up Archisen for up to $1.5 million in three separate tranches. Ian Tong, Avarga’s executive director, is on ­Archisen’s board. Tong is also the executive director of The Edge Media Group, which publishes The Edge Singapore. While indoor farming is not new, high-tech IoT-enabled farm Archisen is drawing on technical expertise from its partners to improve tis production within a controlled environment, shielded from the vagaries of weather that have t....
Read More >>
BMW charges up an 'electrified future'

Christopher Wehner, managing director of BMW Group Asia, explains how electric cars such as the BMW