SINGAPORE: OUE Commercial REIT on Wednesday (Jun 10) announced its plans to buy into One Raffles Place, in its maiden acquisition since its initial public offering in January last year.
Under the deal, OUE Commercial REIT plans to buy a stake of between 75 per cent and 83.33 per cent in OUB Centre Limited, which owns One Raffles Place. OUB is the registered owner of the property and it owns 81.54 per cent of the beneficial interest in the property.
This will give the REIT an effective interest of between 61.16 per cent and 67.95 per cent in One Raffles Place.
The agreed value for the acquisition is expected to be between S$1.28 billion and S$1.43 billion. Depending on the stake acquired, the purchase consideration is expected to be between S$1.0 billion and S$1.15 billion.
OUE C-REIT is seeking to strengthen its position within the Singapore office market. Following the deal, its assets under management is expected to increase from S$1.6 billion as at Dec 31, 2014, to S$3.4 billion.
Located in the heart of Singapore’s Central Business District, One Raffles Place is an integrated commercial development comprising two Grade-A office buildings and a recently refurbished retail mall – One Raffles Place Shopping Mall.