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OUE Commercial REIT (C-REIT) on Wednesday announced that it has established a distribution reinvestment plan (DRP), through which unitholders of OUE C-Reit may opt to receive distributions in the form of fully-paid new units instead of cash.
According to its REIT manager, OUE Commercial REIT Management, this will enable Unitholders to increase their unitholdings in the REIT without incurring brokerage fees, stamp duties and other related costs.
The plan will also enlarge the REIT’s capital base, and strengthen its working capital “from the participation by unitholders in the DRP as, to the extent that Unitholders elect to receive distributions in the form of new units, the cash which would otherwise be payable by way of cash distributions may be retained to fund the growth and expansion of OUE C-REIT,” it said.
The DRP may be applied from time to time to any distribution declared by OUE C-REIT as the manager may determine in its absolute discretion.
Meanwhile, the manager also noted that participation in the DRP is optional, and unitholders may elect to participate in respect of all or part of their unitholdings. It also added that DRP may, at the discretion of the manager, not be offered to overseas unitholders.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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