Marina Bay Financial Centre Phase 1 freed from corporate income tax

The conversion to BFC Development Limited Liability Partnership, a third of which is owned by K-REIT Asia, grants unitholders with higher distributable income.

In a news release, K-REIT Asia Management Limited, the Manager of K-REIT Asia announced that BFC Development Pte. Ltd., which holds Marina Bay Financial Centre Towers 1 & 2 and Marina Bay Link Mall Phase I, collectively known as MBFC Phase I, has been successfully converted to BFC Development Limited Liability Partnership. K-REIT Asia owns a one-third stake in BFCD LLP.

This conversion to a Limited Liability Partnership will allow Unitholders of K-REIT Asia to enjoy tax transparency on K-REIT Asia's share of income from MBFC Phase I. This means that the income generated by MBFC Phase 1 will not be subject to corporate income tax.

Ms Ng Hsueh Ling, CEO of K-REIT Asia Management, said, "We are pleased with the conversion as this is expected to increase K-REIT Asia's distributable income. Unitholders can benefit from higher income distribution as we continue to grow MBFC Phase I's rental revenue potential. This is in line with our aim to continually deliver stable and sustainable returns to our Unitholders."

MBFC Phase 1 comprising office towers 1 & 2 and Marina Bay Link Mall is jointly owned by Hongkong Land, K-REIT Asia and Suntec REIT. At 33- and 50-storeys high respectively, MBFC Towers 1 & 2 are premium Grade A office buildings located in close proximity to the Marina Bay Sands integrated resort, Esplanade - Theatres by the Bay and other lifestyle amenities. Marina Bay Link Mall provides seamless connections to the Raffles Place MRT station, One Raffles Quay and future developments fringing the Marina Bay waterfront. Come 2013, the mall will be connected to the Downtown MRT Line, which will provide easier access to the Marina Bay area.