Singapore’s Keppel REIT Doubles Down on Marina Bay with USD 1.1bn Tower 3 Deal

Keppel REIT is making a power play in Singapore’s most prestigious business district, snapping up an additional one-third stake in Marina Bay Financial Centre (MBFC) Tower 3 for USD 1.1bn. The blockbuster deal brings REIT’s total ownership in the trophy asset to 66.7%, with the remaining third held by anchor tenant DBS Bank.

The transaction values MBFC Tower 3 at a whopping SGD 4.36bn (USD 3.36bn) on a 100% basis and comes at a slight 1% discount to an independent valuation. The seller, Hongkong Land, is offloading the stake as part of a broader strategy to recycle capital, with USD 2.8bn achieved since 2024.

To finance the deal, Keppel REIT tapped unitholders with a preferential offering of SGD 886.3mn, priced at SGD 0.96 per unit — a 6.8% discount to market. The remainder of the acquisition cost was covered by debt, keeping leverage in check. 

The acquisition checks all the boxes for Keppel REIT: strategic location, strong fundamentals, and rental upside. MBFC Tower 3 is a 46-storey Grade A office tower with 1.3 million sq ft of prime space, 357 car park lots, and direct access to multiple MRT lines. Occupancy stood at 99.5% as of September 2025, and current rents are about 10% below market averages, pointing to embedded growth potential. The property also boasts top-tier sustainability credentials, including BCA Green Mark Platinum and WELL Health-Safety certification.

Strategically, the deal boosts Keppel REIT’s exposure to Singapore from 75.8% to nearly 79% and lifts its total portfolio value to around SGD 11.2bn. While the acquisition may cause a temporary dip in distribution per unit—between 3.6% and 6.4%, depending on funding costs—the long-term outlook is compelling, backed by limited new supply in Marina Bay through 2029 and sustained demand from blue-chip tenants.

In short, Keppel REIT is doubling down on what it knows best: owning and operating high-quality, income-producing assets at the heart of Asia’s top financial hubs. And this latest deal reinforces that conviction.

Are you interested in M&A intelligence? Request a demo of our platform here