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.