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Keppel Reit divests Sydney property for A$160 million

KEPPEL Reit will be divesting its stake in a Sydney building for A$160 million (S$160 million).

The sale of its 100 per cent interest in 77 King Street to ARE Noble, a wholly owned subsidiary of Invesco Asia Core Fund, will result in a divestment gain of about A$28 million, it said.

The A$160 million consideration is some 40 per cent above the original purchase price of A$116 million in end-2010, and about 28 per cent higher than the A$126 million that the property was last valued at.

The Reit's manager said that it intends to use the proceeds to pay existing debt, fund general corporate and working capital purposes and for future investment opportunities.

"The strategic divestment of 77 King Street is in line with our commitment to maximise and capture value for unitholders, while providing Keppel Reit with greater financial flexibility," said Keppel Reit Management's CEO, Ng Hsueh Ling.