Temasek Said to Have Sold Its Stake in Singapore’s Keppel REIT

Temasek Holdings Pte, Singapore’s state-owned investment company, sold a stake in office landlord Keppel REIT (KREIT), according to two people familiar with the transaction.

Temasek sold about 103.9 million shares at an average price of S$1.195 each, or a total of about S$124 million ($100 million), according to one of the people, who asked not to be identified because the information is private. Stephen Forshaw, a spokesman for Temasek in Singapore, didn’t immediately respond to Bloomberg News queries on the sale. Keppel Corp., the parent of the Singapore REIT, said in an e-mail it cannot immediately comment.

Keppel Corp. in July announced an additional dividend in the form of Keppel REIT units to its shareholders after completing a similar distribution in May. The parent gave eight Keppel REIT units for every 100 shares of its own stock held. Temasek holds a 21 percent stake in Keppel Corp., while it held 3.74 percent of the REIT, according to data compiled by Bloomberg.

Keppel REIT shares, which have declined 8.5 percent this year, fell as much as 4.1 percent to S$1.18 and traded at S$1.190 as of 12:59 p.m. in Singapore trading.

Temasek in July said assets rose to a record S$215 billion in the fiscal year ended March 31 as surging stock markets drove an almost sixfold increase in returns. Total shareholder return, which includes dividends, widened to 8.9 percent from 1.5 percent in the previous year.

To contact the reporter on this story: Pooja Thakur in Singapore at pthakur@bloomberg.net

To contact the editor responsible for this story: Andreea Papuc at apapuc1@bloomberg.net

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