First Resources defends no-burn policy as Keppel REIT expands Singapore office portfolio
First Resources said it follows a strict zero-burning rule and expects an objective review to clear it of fire-related land-clearing accusations, while Keppel REIT announced a S$610.9 million purchase of a 51% stake in Keppel South Central.
First Resources, a Singapore-based palm-oil company, affirmed its commitment to a zero-burning policy that is strictly enforced across all its operations. The firm welcomed a thorough, evidence-based review, confident that the investigation will confirm it does not engage in land clearing by fire, a matter linked to regional haze issues. Following the statement, its shares closed up 3.4% at S$3.93.
In a separate development, Keppel Real Estate Investment Trust announced the purchase of a 51% stake in the Keppel South Central property from its sponsor Keppel for S$610.9 million. The acquisition is intended to strengthen the REIT’s footprint in Singapore’s prime office sector, offering a pro-forma distribution per unit accretion of 2.01% and an attractive initial yield of 4.3%. The transaction did not move the REIT’s unit price, which remained at S$0.825. Both moves are seen as strategic steps to reinforce the companies’ market positions.
Why it matters
The statements affect investor confidence in First Resources and expand Keppel REIT’s exposure to Singapore's high-value office market.
In this story
