Keppel Pacific Oak US Reit obtains US$37.5 million loan facility

[SINGAPORE] Keppel Pacific Oak US Reit (Kore) has obtained a US$37.5 million loan facility pursuant to an agreement dated Tuesday (Jan 6) through its trustee, Perpetual (Asia).

Following the execution of the loan facility, the real estate investment trust (Reit) will have “substantially addressed” its refinancing requirements for 2026, the manager said on Tuesday.

The loan facility has several conditions relating to a change in the manager or a change in the unitholding interests of the Reit’s controlling unitholder.

Under the terms of the loan facility, the borrower is mandatorily required to pre-pay all outstanding loans in 10 business days in the event that:

• the Reit’s manager, its successor, replacement or substitute ceases to manage the Reit;
• Keppel and its subsidiaries, Pacific Oak Capital Advisors and its subsidiaries, or Kore Pacific Advisors, cease to collectively own all of the manager’s issued share capital; or
• Keppel Capital Investment Holdings ceases to own at least 64.2 million units in Kore.

The manager noted that an aggregate of around US$857.5 million in facilities will be affected in the event that mandatory pre-payment occurs.

It added that no event has occurred to require mandatory pre-payment as at Tuesday.

SEE ALSO

US office S-Reits could be on the cusp of a comeback

Keppel Pacific Oak US Reit 9-month distributable income falls 14.8% to US$30.4 million

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Units of Kore closed Tuesday 2.1 per cent or US$0.005 higher at US$0.24, before the news.