Citigroup has maintained its “sell” call on K-REIT Asia (KASA.SI) but raised its target price to 66 cents from 55 cents after the office property trust says it would be acquiring six floors of Prudential Tower for $106.3 million from APF Property Investments. This works out to $1,579 psf on Nett Lettable Area of 67,300 sq ft and will bring K-REIT’s stake in the strata value of Prudential Tower from 44% to 73%.

The six floors consist of levels 20 to 25 of the 30-storey Prudential Tower and are currently occupied by six tenants. The acquisition is fully debt-funded and will increase K-REIT’s gearing from 27.6% to 31.1% when completed in two months time.