A unit of Keppel Corporation's property arm is taking full control of shopping mall I12 Katong, paying about S$56.6 million to buy the remaining shares that it does not own in the property.
Keppel said on Thursday that DC Reit Holdings - in turn a wholly owned unit of Keppel Land - will acquire 77.6 per cent of the issued share capital of PRE 1, which owns I12 Katong, from the subsidiary of Alpha Asia Macro Trends Fund. DC Reit Holdings' shareholding interest in PRE 1 was previously at 22.4 per cent.
Keppel said that it expects to record a loss of S$16.8 million from the re-measurement of its previously held interests in PRE 1 and Katong Retail Trust (KRT), a special purpose trust that holds the property.
Keppel said the mall is strategically located in "an affluent and thriving residential precinct" that will get a boost in connectivity once the Thomson-East Coast Line is completed.
"Following the consolidation of ownership in the property, Keppel Land will explore ways to further improve theproperty through asset enhancement works and the introduction of new concept offerings."
Adapted from The Business Times, 24 Dec 2018.