Keppel REIT Successfully Completes Acquisition of 75% Stake in Top Ryde City Shopping Centre, Sydney

Key Highlights for Investors

• Acquisition Completion: Keppel REIT has finalized the acquisition of a significant 75% effective interest in Top Ryde City Shopping Centre, a major retail property located in Sydney, Australia.
• Private Placement Proceeds Fully Deployed: The S\$113 million raised from a recent private placement has been fully utilized, primarily for financing the acquisition and covering related expenses.
• New Management Contracts in Place: Keppel has secured property and asset management agreements with reputable Australian managers to ensure effective operation and value creation from the acquired asset.

Detailed Breakdown and Potential Price-Sensitive Information

1. Completion of Large-Scale Acquisition

Keppel REIT, managed by Keppel REIT Management Limited, has completed the purchase of a 75% interest in Top Ryde City Shopping Centre. This strategic acquisition marks Keppel REIT’s continued expansion in the Australian market, providing a new income-generating asset in a prime Sydney location. The acquisition was previously announced and has now been executed in line with earlier disclosures.

2. Significant Capital Deployment

The acquisition was funded through a private placement, which raised gross proceeds of approximately S\$113.0 million. Investors should note that the entire amount raised has already been fully deployed:

• S\$111.6 million was used to partially finance the acquisition of the 75% interest in the shopping centre (an increase from the initially announced S\$109.6 million).
• S\$1.4 million was allocated to pay estimated fees and expenses (down from the original S\$3.4 million allocation, with the remaining S\$2 million reallocated to the acquisition itself).
• No remaining proceeds are pending utilisation – all funds have been used as of the date of the announcement.

Importantly, this reallocation of S\$2 million from expenses to acquisition, although a deviation from the percentage originally allocated, is still within the stated use of proceeds and has been fully disclosed to the market.

3. Long-term Management Arrangements

• Property Management: Keppel REIT, together with its Australian partners, has appointed MA Real Estate Services Pty Ltd as the property manager for an initial term of three years, with an option to extend for two additional years. If not extended, the contract will continue on a month-to-month basis with a three-month notice period for termination by either party.
• Asset Management: MA Investment Management Pty Ltd will act as asset manager for Keppel’s 75% interest, with a minimum five-year term. After this period, the contract automatically renews on a yearly basis unless terminated.

These agreements ensure professional management expertise and a stable operational outlook for the Sydney retail property, which is expected to contribute positively to Keppel REIT’s income.

Potential Impact on Shareholders and Share Price

• The completion of this acquisition is a major milestone for Keppel REIT and could positively influence investor sentiment and share price, due to the added income potential and portfolio diversification in a high-quality Australian asset.
• Full deployment of private placement proceeds demonstrates management’s ability to efficiently execute on capital raising and allocation strategies.
• The reallocation of proceeds, although a minor deviation, is fully transparent and within the scope of the stated use, maintaining governance standards.
• Future performance will depend on the asset’s operational success, potential rental income, and overall market conditions in the Australian retail sector.

Important Note for Investors

This announcement is for informational purposes and does not constitute an offer or solicitation to buy or sell Keppel REIT securities. The value of units and income from them may fluctuate. Past performance is not indicative of future results. Investors are advised to consider their investment objectives and consult professional advisors.

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