Singapore’s Keppel REIT Management, as manager of Keppel REIT, has accepted an offer set out in a pre-emptive offer notice from Sageland for Keppel REIT to acquire an additional one-third interest in Marina Bay Financial Centre Tower 3 ( MBFC Tower 3 ) in Singapore at an agreed property value of S$1.453 billion ( US$1.24 billion ) or S$3,268 per square foot.

The agreed property value represents a discount of approximately 1.0% to the property’s independent valuation ( based on the one-third interest ) of S$1,467.3 million. Post-completion, together with the one-third interest, which Keppel REIT currently holds in MBFC Tower 3, Keppel REIT will hold in aggregate, two-third interest in MBFC Tower 3.

Strategically located in the heart of Marina Bay, the downtown core of Singapore’s central business district, the 46-storey MBFC Tower 3 is a premium grade A office building with an aggregate net lettable area of approximately 1.3 million square feet. It is directly connected to the Downtown MRT station and in close proximity to the Marina Bay, Shenton Way, Bayfront, Telok Ayer and Raffles Place MRT stations, ensuring excellent accessibility.

DBS is a key tenant at MBFC Tower 3, which is supported by a diverse and strong tenant base, including blue-chip corporations across financial institutions, legal services and technology and media companies, among others.

The property enjoys a high committed occupancy of approximately 99.5% as of September 30, Keppel shares, and a weighted average lease expiry of 3.5 years. Looking ahead, the sustained demand for quality office space coupled with the absence of new office supply in the Marina Bay area are expected to support potential rental growth and long-term capital appreciation.

The acquisition will be completed on December 31 2025. Post-completion, Keppel REIT’s Singapore-centric portfolio value will increase from S$9.8 billion across Singapore ( 75.8% ), Australia ( 20.5% ), South Korea ( 2.8% ) and Japan ( 0.9% ) to S$11.2 billion across 14 properties in Singapore ( 79.0% ), Australia ( 17.8% ), South Korea ( 2.4% ) and Japan ( 0.8% ).

“The exercise of our pre-emptive right to acquire the incremental one-third share of MBFC Tower 3 presents a rare opportunity to increase our interest in an iconic asset in the prime Marina Bay area, with potential for future rental upside and capital appreciation over the long term,” says Chua Hsien Yang, Keppel REIT’s CEO. “This acquisition reflects our confidence in Singapore’s prime office sector and reinforces our focus to anchor and continue to grow our portfolio of grade A commercial assets in the market.”