Moody's: K-Reit Asia unchanged

Moody's Investors Service said it sees no immediate impact on the Baa3 corporate family rating of K-REIT Asia following news that it has contracted to acquire four office floors comprising 19.4% strata value in Prudential Tower for S$125 million.

The outlook remains stable.

The acquisition will increase K-REIT's existing 73% strata interest in the property to 93%, Moody's said.

The agency said it expects that K-REIT will be able to raise medium-term funding at a competitive cost to complete the transaction. Any material deviation from such expectation or any onerous financing terms would warrant a reassessment of the rating, Moody's said.

K-REIT's exposure to the prime office segment continues to be enhanced with this acquisition, with more than 90% of its Singapore portfolio located in the prime commercial business district area, the agency said.

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