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OUE Limited announced that it is acquiring a 60 percent stake in Bowsprit Capital Corporation, the manager of Singapore-listed First REIT, for an undisclosed amount, according to an SGX filing on Tuesday (18 Sept).
Aside from acquiring a 10.63 percent stake in First REIT, its unit OUE Lippo Healthcare also plans to purchase the remaining 40 percent stake in in Bowsprit Capital, which has assets under management (AUM) of about S$1.3 billion as of 30 June.
These consist of over 20 properties in Singapore, Indonesia and South Korea that comprise mostly hospitals and healthcare facilities.
These include the Sarang Hospital in South Korea, as well as three healthcare facilities in Singapore, namely The Lentor Residence, Pacific Healthcare Nursing Home @ Bukit Merah and Pacific Healthcare Nursing Home II @ Bukit Panjang.
Aside from the Imperial Aryaduta Hotel & Country Club, Lippo Plaza Buton, Lippo Plaza Kupang and Hotel Aryaduta Manado, the rest of the properties in Indonesia comprise hospitals and healthcare facilities.
OUE currently runs OUE Hospitality REIT and OUE Commercial REIT, which have combined AUM of around $5.7 billion as at 30 June.
“Asset management business is a key component of OUE’s business and growth strategy. The Bowsprit acquisition, combined with our existing REITs’ portfolios and completion of OUE Downtown injection into OUE Commercial REIT, will bring our AUM to approximately $8.0 billion by this year and we plan to grow it to over $10 billion by 2019,” said OUE’s executive chairman Dr Stephen Riady.
“The Bowsprit acquisition is part of OUE’s on-going strategy to create a sizeable asset management platform, comprising of diversified REITs. Bowsprit and First REIT will benefit from the support, network, management skills and knowhow from the company’s portfolio of REITs. We will continue to enhance the AUM of our asset management platform with a view to bringing us closer to our target of doubling AUM in the foreseeable future.”
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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