Mixed views on potential MBFC Tower 3 deal

THE potential divestment of Prudential Tower - previously flagged by various research houses as a possible sale target for Keppel Reit (K-Reit) - has drawn differing views from analysts.

This follows the Reit management's acknowledging market speculation that Marina Bay Financial Centre (MBFC) Tower 3 is on its radar. At the Reit's results briefing last week, chief executive officer Ng Hsueh Ling, while stressing that it was "too early to comment", added that the Reit might consider the possibility of divesting one of its older assets to partially fund the Tower Three acquisition should there be such a transaction.

Earlier this week, Bloomberg, citing sources, reported that the Reit had put a $531 million price tag ($2,400 psf) on its 30-storey Prudential Tower in Cecil Street. This is 8.3 per cent higher than its valuation of $490 million as at end-2013.