Positive pivot or premature? Analysts split on Keppel Reit’s S$610.9 million buy

Keppel Reit's proposed S$610.9 million acquisition of a 51% stake in Keppel South Central has elicited mixed reactions from research houses. The majority view is that the redeployment of capital into Singapore is positive, but analysts have expressed concerns over early-stage leasing and potential equity fundraising. The transaction values the asset at around S$2,350 per square foot, based on net lettable area.

Keppel Reit's manager announced the acquisition on Tuesday, Oct 20, with the agreement valuing the 51% stake at S$626.2 million. Research houses have reacted to the proposed acquisition with a range of opinions.