Will you buy the IPO of Keppel-KBS US REIT ?
Offering Price: US$0.88 per Unit
Keppel-KBS US REIT is making an offering of 262,772,400 units.
In addition, concurrently with, but separate from the Offering, each of the Cornerstone Investors has entered into a separate subscription agreement to subscribe for an aggregate of 246,365,400 Units.
Cornerstone Investors :
1. Affin Hwang Asset Management Bhd
2. Credit Suisse AG
3. DBS Bank Ltd.
4. DBS Bank Ltd. (on behalf of certain private banking clients)
5. Hillsboro Capital, Ltd.
The total number of outstanding Units immediately after completion of the Offering will be 628,565,000 Units.
The initial portfolio of Keppel-KBS US REIT will comprise 11 office properties in the United States, with an aggregate NLA of 3,225,739 sq ft. The IPO Portfolio consists of the following properties :
West Coast =>
1. The Plaza Buildings (Bellevue)
2. Bellevue Technology Center
3. Iron Point
Central Region =>
4. Westmoor Center
5. Great Hills Plaza
6. Westech 360
7. 1800 West Loop South
8. West Loop I & II
East Coast =>
9. Powers Ferry Landing East
10.Northridge Center I & II
11.Maitland Promenade II
The IPO Portfolio has a stable weighted average lease expiry ("WALE") by NLA as at 30 June 2017 of 3.7 years. No single year has more than 20% of total leases expiring.
As at 30 September 2017, the IPO Portfolio enjoys a high committed occupancy of approximately 90.0%, with most of the Properties within the IPO Portfolio experiencing occupancy rates above or in line with their respective markets.
Keppel-KBS US REIT offers an attractive distribution yield – the distribution yield for Forecast Year 2018 is 6.8%, with expected distribution yield growth of 5.8% in Projection Year 2019 to 7.2%.
Approximately 97.5% of existing leases by Cash Rental Income and 97.5% of existing leases by NLA have built-in rental escalations. The rental escalations generally range from 2.0% to 3.0%.
The top 10 tenants of the IPO Portfolio contribute not more than 22.3% by Cash Rental Income. In addition, the top 10 tenants have a WALE of 5.2 years.
Top 10 tenants of the IPO Portfolio by percentage of estimated Cash Rental Income for the month of June 2017 (% of Cash Rental Income)
1. Zimmer Biomet Spine, Inc. (3.0%)
2. Unigard Insurance Company (2.7%)
3. ServiceLink Field Services LLC (2.3%)
4. Ball Aerospace & Tech Corp (2.2%)
5. Reed Group, LTD (2.2%)
6. US Bank National Association (2.2%)
7. Oracle America, Inc. (2.1%)
8. Regus PLC (1.9%)
9. Blucora, Inc. (1.9%)
10.Health Care Service Corp (1.8%)
Key Investment Highlights :
1. Attractive Office Real Estate Fundamentals Supported by the Highly Sustainable Economic Growth in the US
2. Quality and Resilient Portfolio Located in Key Growth Markets in the US
3. Attractive Distributions with Visible Organic Growth Potentia
4. Reputable Sponsors and US Asset Manager with Strong Track Record
5. Experienced Management Team
More details in https://eservices.mas.gov.sg/opera/4b697...shresource
Offering Price: US$0.88 per Unit
Keppel-KBS US REIT is making an offering of 262,772,400 units.
In addition, concurrently with, but separate from the Offering, each of the Cornerstone Investors has entered into a separate subscription agreement to subscribe for an aggregate of 246,365,400 Units.
Cornerstone Investors :
1. Affin Hwang Asset Management Bhd
2. Credit Suisse AG
3. DBS Bank Ltd.
4. DBS Bank Ltd. (on behalf of certain private banking clients)
5. Hillsboro Capital, Ltd.
The total number of outstanding Units immediately after completion of the Offering will be 628,565,000 Units.
The initial portfolio of Keppel-KBS US REIT will comprise 11 office properties in the United States, with an aggregate NLA of 3,225,739 sq ft. The IPO Portfolio consists of the following properties :
West Coast =>
1. The Plaza Buildings (Bellevue)
2. Bellevue Technology Center
3. Iron Point
Central Region =>
4. Westmoor Center
5. Great Hills Plaza
6. Westech 360
7. 1800 West Loop South
8. West Loop I & II
East Coast =>
9. Powers Ferry Landing East
10.Northridge Center I & II
11.Maitland Promenade II
The IPO Portfolio has a stable weighted average lease expiry ("WALE") by NLA as at 30 June 2017 of 3.7 years. No single year has more than 20% of total leases expiring.
As at 30 September 2017, the IPO Portfolio enjoys a high committed occupancy of approximately 90.0%, with most of the Properties within the IPO Portfolio experiencing occupancy rates above or in line with their respective markets.
Keppel-KBS US REIT offers an attractive distribution yield – the distribution yield for Forecast Year 2018 is 6.8%, with expected distribution yield growth of 5.8% in Projection Year 2019 to 7.2%.
Approximately 97.5% of existing leases by Cash Rental Income and 97.5% of existing leases by NLA have built-in rental escalations. The rental escalations generally range from 2.0% to 3.0%.
The top 10 tenants of the IPO Portfolio contribute not more than 22.3% by Cash Rental Income. In addition, the top 10 tenants have a WALE of 5.2 years.
Top 10 tenants of the IPO Portfolio by percentage of estimated Cash Rental Income for the month of June 2017 (% of Cash Rental Income)
1. Zimmer Biomet Spine, Inc. (3.0%)
2. Unigard Insurance Company (2.7%)
3. ServiceLink Field Services LLC (2.3%)
4. Ball Aerospace & Tech Corp (2.2%)
5. Reed Group, LTD (2.2%)
6. US Bank National Association (2.2%)
7. Oracle America, Inc. (2.1%)
8. Regus PLC (1.9%)
9. Blucora, Inc. (1.9%)
10.Health Care Service Corp (1.8%)
Key Investment Highlights :
1. Attractive Office Real Estate Fundamentals Supported by the Highly Sustainable Economic Growth in the US
2. Quality and Resilient Portfolio Located in Key Growth Markets in the US
3. Attractive Distributions with Visible Organic Growth Potentia
4. Reputable Sponsors and US Asset Manager with Strong Track Record
5. Experienced Management Team
More details in https://eservices.mas.gov.sg/opera/4b697...shresource
Specuvestor: Asset - Business - Structure.