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Keppel Corporation's DC REIT Holdings has entered into a sale and purchase agreement to buy up the remaining shares of I12 Katong shopping mall at an aggregate cash consideration of S$56.6 million.
DC REIT is a wholly-owned subsidiary of Keppel Land, the property arm of conglomerate Keppel. The REIT will acquire 77.6% of the issued share capital from Divine (AMT) Limited. DC REIT’s previous shareholding interest in PRE 1, the investment unit that owns the mall, was at 22.4%. The cash consideration will subject to certain adjustments as agreed between the parties, Keppel said.
I12 Katong is located at 112 East Coast Road, Singapore. Formerly known as Katong Mall and Katong People’s Complex, it is a seven-storey shopping mall at the intersection of East Coast Road and Joo Chiat Road. The mall opened in November 2011.
Keppel said the property is “strategically located in an affluent and thriving residential precinct” whose connectivity will be further enhanced with the completion of the upcoming Thomson-East Coast Line.
Following the consolidation of ownership in the property, Keppel Land said it will explore ways to further improve the property through asset enhancement works and the introduction of new concept offerings.
Keppel said it expects to record a loss of S$16.8 million from the re-measurement of its previously held interests in PRE 1 and Katong Retail Trust (KRT), a trust that holds the property.
Keppel Corp and DC REIT’s shares fell at 10.38am Singapore time on Friday, down by 1.87% and 1.45%, at S$5.78 and S$1.36, respectively.