SINGAPORE – A fund managed by Keppel has acquired Wevolve – a company that holds the office and retail components of Wilkie Edge – for $348 million.
Called Alpha Asia Separate Account, the $360 million separate account mandate was secured by Keppel from cooperative Dutch pension fund service provider PGGM. It focuses on core-plus commercial real estate opportunities mainly in Singapore, as well as key cities in Japan and China.
Wilkie Edge is a 12-storey mixed-use development at 8 Wilkie Road in Selegie.
The office and retail components of Wilkie Edge collectively make up eight storeys, comprising six office floors and two retail floors, with a total net lettable area of about 157,400 sq ft. This portion of the property was fully occupied as at end-2023.
Keppel’s acquisition of the development was completed in December. It is not expected to have a material impact on the earnings per share and net tangible assets per share of Keppel for its financial year ended December 2023.
The Business Times first reported about the deal in November. At the time, the consideration was said to have been close to $350 million, which averages at around $2,200-plus per sq ft based on the net lettable area.
In a Jan 8 bourse filing, Keppel said it intends to undertake asset enhancement initiatives to convert, reconfigure and redeploy the property’s existing space to achieve higher rental income.
The global asset manager and operator has secured advance leasing interest for the improved spaces “through proactive engagement and a keen understanding of occupiers’ requirements”.
Keppel also intends to improve the asset’s operational efficiency and performance through its real estate division’s sustainable urban renewal (SUR) strategy.
It will focus on using artificial intelligence-driven technology to bolster commercial buildings’ sustainability performance and valuation.
“The demand for quality commercial real estate continues to be resilient in Singapore,” said Ms Christina Tan, Keppel’s chief executive of fund management and chief investment officer.
“This acquisition of a well-located and well-built property will allow us to leverage Keppel’s strong asset management and SUR expertise to future-proof the asset through our quality and innovative space solutions.”
Shares of Keppel closed 11 cents lower at $6.94 on Jan 8. THE BUSINESS TIMES
