Singapore mainboard-listed property developer OUE Limited announced on 23 February that it has entered into a sale and purchase agreement to acquire units in Singapore office REIT, OUE Commercial REIT (SGX:TS0U).

The units will be acquired from Chinese property tycoon Gordon Tang through a wholly-owned subsidiary of OUE Limited known as Clifford Development Pte Ltd. OUE Limited is the sponsor of OUE Commercial REIT.

Purchase consideration for the acquisition is SGD165.97 million and will be satisfied wholly in cash, said OUE Limited in its statement.

Upon completion of the acquisition, OUE Limited will own 64.98% of the issued units in OUE Commercial REIT.

“The acquisition will allow OUE to enhance its stake in OUE Commercial REIT and, through this, OUE can participate in and derive a stable income stream from OUE Commercial REIT’s regular and growing distributable income”, said the company in its statement. “This also reinforces its commitment to further grow OUE Commercial REIT”, it added.

The price at which the units are being acquired represents a discount of about 14% to the net tangible asset value per unit of SGD0.95 as at 31 December 2015, said OUE Limited. However this translates to about SGD0.82 per unit acquired from the tycoon.

Units of OUE Commercial REIT last changed hands at SGD0.645 on the Singapore Exchange.