Keppel receives eligibility-to-list letter from SGX for planned US commercial Reit

Keppel Corp has received an eligibility to list letter from the Singapore Exchange for the proposed initial public offering of a US commercial real estate investment trust (Reit) on the Mainboard.

Keppel said no decision has been made on whether the proposed Keppel-KBS US Reit will take place, and that more requirements will have to be met before the listing can proceed.

However, Keppel on Friday agreed to take a 50 per cent interest in the proposed Reit manager, Keppel-KBS US Reit Management, for US$27.5 million.

The other 50 per cent owner of the manager is KBS Pacific Advisors. Keppel's wholly owned subsidiary, Keppel Capital, will jointly sponsor the Reit with KBS.

KBS is also the vendor of the properties forming the initial portfolio of the Reit. Its partners are Peter McMillan III, Keith D Hall, Rahul Rana and Richard Bren.