Units of Keppel REIT dropped more than 2 percent after
its parent, Keppel Corporation Ltd, said it would sell
a 6.7 percent stake in the trust for S$280 million ($223
The price fall came after Keppel REIT marched to a
5-1/2-year high of S$1.63 last week, rallying more than 20
percent so far this year and outperforming a 13 percent rise in
the sector index.
An analyst at a foreign brokerage said the uncertainty of a
new shareholder and concerns about further stake sales by Keppel
Corp weighed on the trust.
Keppel REIT stood at S$1.57 per unit but still above the
selling price of $1.555 for the 180 million units or 6.7 percent
of the total issued units of the trust. It was the second most
actively traded stock.
Brokerage UOB Kay Hian said it remained positive on Keppel
REIT because of the trust's strong office portfolio in
Singapore, and retained its target price of S$1.64.