Keppel REIT divests Sydney property for $158m

It will yield a $27m divestment gain.

The real estate investment trust arm of Keppel is looking to be more financially stable as it sells its Sydney property for 40% of its original purchase price and an approximate 27% premium over its latest valuation.

According to a press release by Keppel REIT, as part of the agreement, the purchaser has paid a deposit of $16m.

Located in Sydney’s central business district, the property, 77 King Street, offers approximately 147,000 sqft of net lettable area over 18 levels of offices and two basement levels of retail space, the statement said.

Ng Hsueh Ling, Keppel REIT CEO said the sale proceeds would be used to repay existing debt, fundgeneral corporate and working capital purposes and/or for future investment opportunities.

“The divestment of 77 King Street is expected to be completed in the first quarter of 2016,” the statement said.