Moody's affirms K-REIT Asia

Moody's Investors Service said it affirmed the Baa3 corporate family rating of K-REIT Asia.

The outlook is stable.

The affirmation follows the news that K-REIT and RBC Dexia Trust Services Singapore Ltd. have entered into a sale-and-purchase agreement to acquire levels 20 to 25 of Prudential Tower for about S$106.3 million, Moody's said.

The acquisition of an additional 29% interest in the strata value of Prudential Tower, a prime asset located in the commercial business district of Singapore, makes strategic sense, as it would give K-REIT majority control of the property and enhance its position to manage the income generated from this asset, the agency said.

But, this cash-generative asset would yield a 6% to 7% increase in the K-REIT's annual EBITDA, Moody's added.

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