Singapore conglomerate Keppel Corp said it received an eligibility-to-list letter from the SGX for the proposed initial public offering of a U.S. commercial real estate investment trust (REIT) on the mainboard.
Keppel reiterated that no decision has been made with regards to the proposed listing and there is currently no certainty that Keppel will proceed with the listing.
The receipt of the eligibility-to-list Letter is only one of the requirements which have been met to enable Keppel to proceed with the listing when it considers it appropriate to do so.
Keppel on Friday agreed to buy a 50 percent stake in the proposed REIT manager, Keppel-KBS US REIT Management, for US$27.5 million.
The REIT will be jointly 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, this joint venture will provide Keppel with a strategic platform to expand its geographic footprint in the U.S. market, Keppel said in a statement.
The joint venture is intended to combine Keppel Capital's expertise in investor management, capital markets, and REIT treasury and financial management together with KBS' investment and asset management expertise in US commercial real estate.
Shares in Keppel Corp rose 0.9 percent to S$6.74 on the Singapore Exchange. The stock has gained 16 percent so far this year.