Bellevue Technology Centre in Seattle, Washington. Keppel-KBS US REIT

The initial public offering (IPO) of Keppel-KBS U.S. commercial real estate investment trust (REIT) received strong demand from both institutional and retail investors.

The IPO saw the REIT issue 262.8 million units, subject to an over-allotment option, priced at US$0.88 per unit.

Another 34 million units were offered to the general public in Singapore. About US$200.4 million was received from the public offer, which was about 6.7 times subscribed.

Over 628 million units were issued to raise gross proceeds of approximately US$553.1 million (about S$753 million).

"The positive demand from both institutional and retail investors is a reflection of their confidence in Keppel-KBS US REIT's high-quality portfolio and unique investment proposition that is backed by strong visible growth opportunities, both organically and through future acquisitions," David Snyder, CEO and CIO of the REIT Manager, Keppel-KBS US REIT Management Pte said.

The REIT ISjointly sponsored by Keppel Capital Holdings, a unit of the company and KBS Pacific Advisors.

With growing demand by global investors for U.S. real estate investments in view of the continued stable and sustainable growth of the U.S. economy, the joint venture will provide Keppel with a strategic platform to expand its geographic footprint in the U.S. market, Keppel said last month.