Keppel REIT's debt ratio approaches the limit, unable to acquire more MBFC properties | Lianhe Zaobao

Keppel Real Estate Investment Trust (Keppel REIT) originally intended to acquire more ownership of Marina Bay Financial Centre, but due to its debt ratio nearing the regulatory limit, it ultimately could only acquire one-third of the ownership of Tower 3 of Marina Bay Financial Centre. Trudy Dai, President of Keppel REIT Management Limited, disclosed this information on Tuesday (December 30, 2025) during a dialogue session with the Singapore Investor Association (SIAS). The trust released the content of the dialogue session before the market opened on Friday (January 2, 2026). The trust announced on December 11 last year that it would acquire one-third of the equity of Tower 3 of Marina Bay Financial Centre for SGD 1.453 billion, or approximately SGD 3,268 per square foot. The equity was sold by Hongkong Land's subsidiary Sageland. During the dialogue session, David Gerald, President of the Singapore Investor Association, inquired why the trust exercised its right to purchase Tower 3 instead of simultaneously acquiring Towers 1 and 2 of Marina Bay Financial Centre and One Raffles Quay, along with the related strategic and investment considerations. Keppel REIT originally had a right of first refusal on these Grade A commercial properties. Trudy Dai explained that Hongkong Land issued a notice of right of first refusal on November 21, 2025, requiring the trust to complete the transaction by December 31, 2025. In this situation, the trust had to use equity bridge loans as a temporary source of funds, which would later be repaid through the preferential placement of new units. Further Reading Keppel REIT completes acquisition of 75% equity in Sydney mall, over SGD 100 million funds have been exhausted If the trust were to acquire more assets beyond Tower 3, its financial leverage would significantly increase. The acquisition of only one-third of Tower 3's equity has already brought the trust's total debt ratio to 49.9%, very close to the 50% limit set by the Monetary Authority of Singapore. Trudy Dai stated, "Although we would very much like to acquire more assets, as they are all quality assets, we are unable to do so (within the deadline). Therefore, we had to give up the opportunity to acquire Towers 1 and 2 of Marina Bay Financial Centre and One Raffles Quay." After the expiration of the preemptive purchase rights period, Hongkong Land has injected the remaining unsold assets of the Marina Bay Financial Centre, namely Tower 1, Tower 2, and Raffles Quay Tower 1, into a new private real estate fund in Singapore. Regarding the choice to acquire the ownership of Tower 3, Joseph Tsai pointed out that this asset is of very high quality, with the main tenant being DBS Bank. DBS enjoys a good reputation in Singapore and is also an international financial institution with an investment-grade credit rating. Having such a high-quality tenant provides more assurance for trust income and further enhances the robustness of the investment portfolio. Keppel Real Estate Investment Trust had previously acquired one-third of the ownership of Marina Bay Financial Centre Tower 3 from its sponsor, Keppel Corporation. Following the completion of the latest transaction on December 31 last year, the trust currently holds two-thirds of the ownership of Tower 3. The remaining equity is held by the main tenant, DBS Bank