The Singapore Land Authority (SLA) has granted in-principle approval for Keypoint's lease to be topped up to a fresh 99-year lease, according to an article by the Singapore Business Review.
In the article, DMG noted that Keypoint’s owner, Fraser Commercial Trust, could retain the property for office use, jointly redevelop it or sell the property outright.
“The stage is now set for a final decision on Keypoint. FCOT has quite a few options: It could sell the property outright to its sponsor F&N or a third party, jointly develop the property, or continue to retain the property for office use. Whichever option it eventually chooses, the OPP has given FCOT tremendous flexibility to re-shape and optimise the portfolio, in our view,” said DMG.
“We are positive on the REIT given its ability to extract DPU growth from multiple fronts, including: positive rental reversions for China Square Central and Central Park, potential interest savings as the group re-financed its highcost loans expiring in 2012, backing from a well-established conglomerate F&N which also provides a ready pipeline for acquisition assets.”
Located at the junction of Beach Road and Jalan Sultan, Keypoint is a 25-storey commercial development comprising a three-storey podium, a 22-storey office tower and a four-storey car park containing 227 parking lots. It has a total net lettable area (NLA) of 28,976 sq m, of which 89.4 percent is allocated for office space.
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