Keppel Reit subsidiary obtains S$505 million loan

KEPPEL Reit Management Limited, manager of Keppel Reit, on Tuesday said in a filing to the Singapore Exchange that Ocean Properties LLP has obtained a S$505 million loan facility.

Ocean Properties LLP is a 99.9 per cent-owned subsidiary of Keppel Reit.

Under the terms and conditions of the loan facility agreement, the total commitments shall be cancelled and all the outstanding loans shall be repayable if the manager ceases to be the manager of Keppel Reit and a wholly owned (direct or indirect) subsidiary of Keppel Corporation Limited or Keppel Land Limited is not appointed as a replacement or substitute manager of Keppel Reit, or if the manager ceases to be a wholly owned (direct or indirect) subsidiary of Keppel Corporation Limited or Keppel Land Limited.

"Assuming that the occurrence of a 'prepayment event' would cause Ocean Properties to be required to repay the outstanding loans of the loan facility and such events 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, as at the date of this announcement, approximately S$3,001 million (excluding interest and fees)," the manager said.