It aims to enhance how it finances the firm’s offices.
Keppel REIT’s subsidiary Ocean Properties (OP LLP) has obtained a $505m green secured loan facility, an announcement revealed.
On obtaining the green loan facility, Keppel REIT Management’s CEO Paul Tham noted that firm is continually looking for opportunities to improve the sustainability of its portfolio as part of its long-term strategy.
“This is more than just ensuring our office buildings uphold high environmental standards, but also extends to how we look at our financing,” he said.
Under the terms and conditions of the facility agreement in respect of the green secured loan facility, the lender may give notice to OP LLP as borrower to prepay any outstanding loans if Keppel REIT Management ceases to be a (directly or indirectly) wholly-owned subsidiary of Keppel Corporation.
Assuming the occurrence of the prepayment event which may cause the lender to require OP LLP to prepay the outstanding loans of the green secured loan facility, and such occurrence were to cause a cross default under other borrowings of the Keppel REIT group, the aggregate level of facilities that may be affected is estimated to be approximately $3.44b (excluding interest and fees).
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