Singapore-listed office REIT, OUE Commercial REIT (SGX:TS0U), has announced its intention to issue 393.3 million new units, raising gross proceeds of approximately SGD218.3 million.
The units are being issued to fund the acquisition an indirect interest in One Raffles Place.
The proposed acquisition will be effected through the acquisition of between 75% and 83.33% indirect interest in OUB Centre Limited from OUE Limited via the acquisition of its wholly-owned subsidiary Beacon Property Holdings.
OUB Centre Limited is the registered owner of One Raffles Place and owns 81.54% of the beneficial interest in the property. The total cost of the proposed acquisition is expected to be between approximately SGD1,061.2 million to SGD1,178.3 million.
Eligible unitholders of OUE Commercial REIT will be entitled to subscribe for nine new units for every 20 existing units held as at the books closure date at SGD0.555 per new unit.
Interested unitholders can subscribe for the rights issue from 10 July 2015 to 27 July 2015. Rights units are expected to list on the Singapore Exchange on 5 August 2015.