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Keppel-KBS US Reit IPO over-subscribed

THE initial public offering (IPO) of Keppel-KBS US Reit received an overwhelming response from both institutional and retail investors.

The Reit (real estate investment trust) manager said after trading closed on Wednesday that the placement tranche for 228,681,800 units to investors outside the US was over-subscribed.

Another 34,090,600 units were offered to the general public in Singapore. This public offer drew 9,064 valid applications for an aggregate of 227,764,700 units. Around US$200.4 million was received from the public offer, which was about 6.7 times subscribed.

The Reit manager added that gross proceeds of about US$553.1 million in all were raised from a total of over 628.5 million units issued. These include 246,365,400 units issued to cornerstone investors and 119,427,199 units issued to joint sponsors who own the Reit manager.

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David Snyder, CEO and CIO of the Reit manager, said: "The positive demand from both institutional and retail investors is a reflection of their confidence in Keppel-KBS US Reit's high quality portfolio and unique investment proposition that is backed by strong visible growth opportunities, both organically and through future acquisitions."

Keppel-KBS US Reit is backed by joint sponsors, Keppel Capital and KBS Pacific Advisors. Its initial portfolio comprises 11 freehold properties valued at US$829.4 million in seven growth cities in the US.