Units of Keppel REIT dropped more than 2% after its parent, Keppel Corporation, said it would sell a 6.7% stake in the trust for $280 million.

The price fall came after Keppel REIT marched to a 5-1/2-year high of $1.63 last week, rallying more than 20% so far this year and outperforming a 13% rise in the sector index .

An analyst at a foreign brokerage said the uncertainty of a new shareholder and concerns about further stake sales by Keppel Corp weighed on the trust.

Keppel REIT stood at $1.57 per unit but still above the selling price of $1.555 for the 180 million units or 6.7% of the total issued units of the trust. It was the second most actively traded stock.

Brokerage UOB Kay Hian said it remained positive on Keppel REIT because of the trust's strong office portfolio in Singapore, and retained its target price of $1.64.