K-Reit Proposes $700m Rights Issue

Source : The Business Times, January 23, 2008

Singapore office property trust K-Reit Asia said on Wednesday that it is making a fully renounceable rights issue to raise $700 million (US$488 million) to fund an acquisition.

The funds will repay part of a bridging loan of $942 million from major shareholder Keppel Corp, which it had taken to fund the purchase of a one-third share in the One Raffles Quay office building, K-Reit Asia said in a statement.

It said major unitholders Keppel Corp and Keppel Land have committed to taking up their respective allocation of the rights units, and any units not subscribed by minority unitholders.

The trust also reported a 63 per cent year-on-year increase in distributable income to $6.9 million for the fourth quarter to December 2007. -- REUTERS