Keppel in share swap with Mapletree for Keppel Bay and Harbourfront Towers

The Keppel Group has consolidated ownership of Keppel Bay Tower through a share swap transaction with Mapletree.
The Keppel Group has consolidated ownership of Keppel Bay Tower through a share swap transaction with Mapletree. PHOTO: KEPPEL

SINGAPORE - Keppel Corporation and Keppel Land have agreed to acquire the remaining 30 per cent interest in Harbourfront One, which holds Keppel Bay Tower, from Mapletree Investments for about S$180.9 million.

This is part of a share swap transaction with Mapletree that sees the holding companies under Keppel Corporation and Keppel Land divesting to Mapletree their 39 per cent interest in Harbourfront Two, which holds Harbourfront Towers 1 and 2, for about S$225.7 million.

The share swap will allow Keppel Group to increase its interest in Keppel Bay Tower from the current 70 per cent to 100 per cent, Keppel said on Wednesday (Dec 30).

Keppel Bay Towers and Harbourfront Towers 1 and 2 were jointly developed by Keppel and Mapletree in 2002 as part of the Keppel Bay and Harbourfront development.

Keppel Bay Tower and Harbourfront Tower 1 are 18-storey twin office buildings while Harbourfront Tower 2 is a smaller 16-storey office building with the Singapore Cable Car station located on the 15th storey.

The towers offer a total of about 910,200 sq ft of office space in the Keppel Bay and Harbourfront precinct.

The agreements for both the acquisition and divestment were negotiated on a willing-buyer and willing-seller basis, Keppel said.

The transactions are not expected to have any material impact on the net tangible assets per share or earnings per share of Keppel Corporation for the current financial year.

wrennie@sph.com.sg