OUE Hospitality Trust's Mandarin Gallery (Photo: REITsWeek)OUE Hospitality Trust's Mandarin Gallery (Photo: REITsWeek)

Property firm Overseas Union Enterprise Limited (OUE) has fired its clearest signal yet that it will be moving ahead with the planned IPO of the OUE Hospitality REIT by lodging a prospectus with the MAS. The IPO will be offered between 88 Singapore cents and 90 Singapore cents.

OUE Hospitality REIT
Properties that will be injected initially into the OUE Hospitality REIT include the Mandarin Gallery and the 5-star Mandarin Orchard Hotel, both along the busy Orchard Road

At the indicative prices, the OUE Hospitality REIT is expected to raise up to S$1.18 billion, making it the third biggest IPO to hit the Singapore market this year.

News of the filing came just a day after another REIT IPO, the SPH REIT, lodged its prospectus with the MAS. The timing of the move have surprised some investors who have expected the REITs to stay clear of current pessimism that is currently surrounding the market. Singapore REITs have largely wiped out all gains made for 2013 on sentiments attributable to a credit crunch in China and expectations that the US Federal Reserve will soon end its liberal monetary policies.

OUE Limited is a property firm in the control of the Indonesian Riady family which also manages the Lippo group.

REITSWEEK will be covering both the SPH REIT IPO and OUE Hospitality REIT in a preliminary assessment for our readers in this week's issue. Subscribe to REITSWEEK today.

By Ridzwan Rahmat

Ridzwan has been analysing REITs and business trusts since 2008, and personally manages a portfolio comprising mainly of SGX-listed REITs. He founded REITsWeek in 2013.