Keppel REIT to strengthen Singapore office portfolio with acquisition of 51% interest in Keppel South Central

DPU-accretive acquisition provides income stability with potential for future upside.

Keppel REIT Management Limited ("Keppel REIT Management"), as manager of Keppel REIT ("Manager"), is pleased to announce that it has entered into a conditional share purchase agreement to acquire a 51% interest in Keppel South Central, a Grade A commercial building located in the heart of Tanjong Pagar, Singapore, from its sponsor, Keppel Ltd. ("Keppel"). The agreement was negotiated on a willing-buyer, willing-seller basis, at an agreed property value of S$626.2 million^[1], equivalent to approximately S$2,350 per square foot ("psf") for the 51% interest on a 70-year leasehold basis.

The acquisition offers an attractive initial property yield of 4.3%^[2] and a pro forma DPU accretion of 2.01%^[3]. The Property's earnings contribution to Keppel REIT is underpinned by an arrangement^[4] with the Vendor^[5] which provides Keppel REIT with a guaranteed monthly income of S$2.23 million for up to five years. Unlike conventional income support arrangements, the proposed arrangement is supported by current rents at the Property. As at 30 September 2026, committed leases and leases which are in the process of documentation for Keppel South Central comprised 52.7%^[6] of net lettable area ("NLA") at an average rent of approximately S$11.30 psf per month, which is above the rent of S$11.15 psf per month assumed under the arrangement. The average rent of approximately S$11.30 psf per month largely reflects leasing activity on the lower-to-mid floors, with potential for higher rents from the remaining available space on the mid-to-high floors. This arrangement offers a stable cash profile during the initial phase of ownership, providing income stability while allowing Keppel REIT to participate in potential future upside from the continued lease-up of the Property. As at 15 October 2026, committed leases and leases which are in the process of documentation for Keppel South Central had increased to approximately 60%.

Mr Chua Hsien Yang, CEO of Keppel REIT Management, said, "The proposed acquisition of Keppel South Central increases our presence in Singapore to 82.0% and reinforces Keppel REIT's leading position in this supply-constrained CBD office market, which continues to benefit from resilient business demand and limited new supply. The DPU-accretive transaction presents a rare opportunity to invest in a Grade A office asset. With an acquisition structure^[4] that provides income stability and potential future upside, the transaction positions us well to deliver sustainable long-term returns for our Unitholders."

Completed in January 2025, Keppel South Central is a 33-storey Grade A commercial building with about 522,500 sf of NLA comprising office space, together with complementary retail, event and flexible workspace offerings, as well as amenities such as an indoor gymnasium, a swimming pool, sky terraces and a social kitchen. Strategically located in Tanjong Pagar, Keppel South Central is within walking distance of five MRT stations, with road connectivity via the Ayer Rajah, Central and Marina Coastal expressways. It has achieved the Building and Construction Authority Green Mark Platinum Super Low Energy, WiredScore Platinum and SmartScore Platinum certifications, reflecting its strong sustainability performance, resilient digital infrastructure and advanced smart-building features.

The Manager intends to fund the acquisition through a combination of bank loans, perpetual securities, internal cash and/or equity financing with post-acquisition aggregate leverage expected to be 39.2%^[7].

On a pro forma basis, assuming the proposed acquisition of Keppel South Central and both the divestments of T Tower and KR Ginza II had been completed on 30 June 2026, Keppel REIT's portfolio occupancy would be 93.9%^[6] with a weighted average lease expiry of 4.5 years^[8]. Its portfolio would comprise 13 properties with a total value of approximately S$12.1 billion across Singapore (82.0%) and Australia (18.0%).

As the acquisition constitutes an interested person transaction, completion will be subject to the approval of Unitholders at an extraordinary general meeting, which is expected to be held in 4Q 2026. The transaction is expected to be completed in 2Q 2027.

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About Keppel REIT (www.keppelreit.com)

Listed by way of an introduction on 28 April 2006, Keppel REIT is one of Asia's leading real estate investment trusts with a portfolio of prime commercial assets in Asia Pacific's key business districts.

Keppel REIT's objective is to generate stable income and sustainable long-term total return for its Unitholders by owning and investing in a portfolio of quality income-producing commercial real estate and real estate-related assets in Asia Pacific.

Keppel REIT has a portfolio value of over $11 billion, comprising properties in Singapore and the key Australian cities of Sydney, Melbourne and Perth.

Keppel REIT is managed by Keppel REIT Management Limited and sponsored by Keppel, a global asset manager and operator with strong expertise in sustainability-related solutions spanning the areas of infrastructure, real estate and connectivity.

^[1] The agreed property value of Keppel South Central takes into account independent valuations conducted by Colliers International Consultancy & Valuation (Singapore) Pte Ltd ("Colliers") and CBRE Pte. Ltd. ("CBRE"), which were commissioned by the trustee of Keppel REIT and the Manager respectively. Keppel South Central was valued at S$646.7 million and S$652.0 million by Colliers and CBRE respectively as of 30 September 2026, taking into account the income support arrangement.

^[2] Including the income support arrangement.

^[3] Assumes the Proposed Acquisition and the divestments of T Tower and KR Ginza II had been completed on 1 January 2025 and taking into account certain adjustments. Capitalised terms used herein, but not otherwise defined, shall have the meanings ascribed to them in the announcement dated 20 October 2026. Please refer to the announcement titled "Proposed acquisition of 51.0% interest in Keppel South Central" ("Acquisition Announcement") for further details.

^[4] Please refer to the Acquisition Announcement for further details.

^[5] K-Commercial Investment Pte. Ltd.

^[6] Keppel South Central's occupancy would be 48.8% as at 30 September 2026 based on committed leases only (on a 100% interest basis).

^[7] Assumes the Proposed Acquisition and the divestments of T Tower and KR Ginza II had been completed on 30 June 2026. Please refer to the Acquisition Announcement for further details.

^[8] Based on attributable committed gross rent.

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• Charmaine Wong (Ms)
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