Recently, there have been a lot of discussions surrounding the Keppel REIT acquisitions of Ocean Financial Center. There are many who criticize it as a conflict of interest, Keppel Land being the sole beneficiary of the transaction. Yet, there are shareholders who vote to approve the transaction, apparently attracted by the rise in dividend yields. So is this an attractive transaction? We would have to look at the presentation closely and scrutinize it.

Ocean Financial Center Was Recently Completed in April 2011 With 80% Committed Occupancy

Transaction Details Keppel Land will sell 87.5% stake in Ocean Financial Center for a period of 99 years (OFC is actually on 999 lease) at $2.01 billion with a rental support of $170 million for five years. Keppel REIT will issue a 17 for 20 rights issue at $0.85 strike price to raise $976.3 million and raise debt of $602.......