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This Keppel KBS US REIT Rights Issue and Withholding Tax Debacle (Guest Post)

This Keppel KBS US REIT Rights Issue and Withholding Tax Debacle (Guest Post)

This post, This Keppel KBS US REIT Rights Issue and Withholding Tax Debacle was originally posted here. The writer is a veteran community member on InvestingNote, with username known as Kyith.

kbs

One of the most traumatizing experience for shareholders of Keppel KBS REIT was the announcement of the acquisition of Westpark Portfolio in Redmond.

Keppel KBS is a Singapore listed real estate investment trust (REIT) which owns 11 office assets in 7 key regional markets in the USA.

Westpark is a portfolio of 21 buildings located in the Redmond area, most famous for being where the original Microsoft resides. Keppel KBS proposed to acquire this portfolio for US$170 mil.

By all accounts for their first acquisition, things should not be so traumatizing. I am not sure if its due to the rather negative overall market sentiments or what but the share price of Keppel KBS have fell 23% since the announcement of the acquisition.

At one point it was 3 cents away from the price the rights was priced at (US$0.50).

I think analysts and bloggers have written enough about it. What I would like to do is to gather some personal notes on what transpired so as for me to revisit next time.

Attractive Dividend Yield Even Before the Acquisition

The chart above shows the timeline of all the events that happen till now (the rights issue have not been concluded yet)

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