Keppel REIT sells office towers for $396m

Keppel REIT has sold Bugis Junction Towers in Singapore for S$547.5 million ($396.83 million).

Paul Tham, CEO of the manager, said, “The divestment of Bugis Junction Towers is part of our ongoing portfolio optimization strategy and realizes capital gains of approximately S$378.1 million [$274 million]. Post-divestment, Keppel REIT’s portfolio will remain firmly anchored by our assets in the central business district of Singapore, which account for 81.1 percent of the portfolio.”

The new owner was not disclosed, but local media outlets are reporting the main buyer is a fund managed by Angelo, Gordon & Co. and Singapore-based property investment manager TCRE Partners.

Keppel REIT bought the 15-story asset in 2006 for S$159.5 million ($115.6 million).

Tham added, “We will continue to seek strategic and higher-yielding acquisitions in our current geographies of Singapore, Australia and South Korea. We believe that quality assets across different m