Singapore-listed property firm Overseas Union Enterprise Limited (OUE) (SGX:LJ3) has requested for a halt in trading of its stocks on the Singapore Exchange. The reason it cited for the halt on the SGX announcements roll is "Pending Release of Announcement". It is largely anticipated that the announcement will be in relation to an impending REIT listing that will be undertaken by the firm.
|Among the hospitality assets of Overseas Union Enterprise Limited that may be injected into the REIT include the Crowne Plaza which is in the vicinity of Singapore's airport and major exhibition venues.|
OUE has announced earlier in May that it will be injecting 2 of its hospitality properties, namely the Mandarin Orchard Singapore and the Mandarin Gallery, into the REIT. The company has also submitted a circular to the Singapore Exchange in respect to the establishment of the REIT for review. It is not clear at this point of time if there would be other properties that would be included at the point of IPO.
Upon listing, OUE is expected to raise about S$840 million from the listing and giving it fresh ammunition to make further property acquisitions in and beyond Singapore. OUE is controlled by the Riady family of Indonesia who in the past have made inclinations to acquire US properties into its portfolio.