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Singapore-listed developer OUE Limited will inject its majority stake in One Raffles Place into OUE Commercial Real Estate Investment Trust (OUE C-REIT), according to the company’s regulatory filing with the local stock exchange.
In line with this, both parties have entered into a conditional sale and purchase agreement that would result in the transfer of OUE Limited’s shareholding interest in OUB Centre Limited (OUBC), the registered owner of the property due to its 81.54 percent beneficial interest.
For a price consideration of between S$1 billion to S$1.1 billion, the REIT will receive all of OUE Limited’s ordinary shares in Beacon Property Holdings (BPHPL), and will own a minimum of 75 percent and up to 83.33 percent of OUBC.
Once the transaction is compleyed, OUE C-REIT’s assets under management are expected to more than double to S$3.4 billion from S$1.6 billion as of 31 December 2014.
“This is part of our commitment to grow OUE C-REIT into an efficient platform for holding commercial properties. As it expands, OUE will benefit from such growth,” said OUE Limited’s Executive Chairman Stephen Riady.
Located in the heart of Singapore central business district, One Raffles Place comprises two Grade-A office buildings and a six-storey retail podium with a combined net leasable area of 860,000 sq ft.
Image: One Raffles Place. (Source: OUB Centre)
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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