US real estate investment firm plans US$500 million IPO in Singapore, Keppel tie-up: Report

SINGAPORE –  An American real-estate investment firm is planning to raise about US$500 million (S$675 million) via a Singapore initial public offering of some of its US office assets, according to a report.

California-based KBS Realty Advisers is said to be in talks with the asset-management arm of Singapore conglomerate Keppel Corp to form a joint venture that they plan to list as a real-estate investment trust later this year (2017).

The new company, based in Singapore, would have an initial portfolio of close to a dozen properties, including office buildings in Seattle, Houston, Denver and other US cities, said Dow Jones Newswires, quoting people close to the deal.

The KBS-Keppel joint venture company could offer an investment yield of close to 7 per cent, it reported.

Founded in 1992, KBS Realty invests, manages, develops and sells US commercial real estate on behalf of pension funds, sovereign-wealth funds and other institutional investors.

As of June 30, the total value of KBS' real estate and real estate-related investments stood at about US$11 billion, according to the company's website. It owns office towers, hotels, apartment complexes and other properties all over America.