OUE Commercial REIT is proposing to acquire the office components of OUE Downtown for an aggregate purchase consideration of SGD908.0 million (USD660 million).
The property will be acquired from a wholly-owned subsidiary of the REIT’s sponsor, Alkas Realty.
OUE Downtown is a mixed-use development that includes the 50-storey OUE Downtown 1, and the 37-storey OUE Downtown 2.
The properties, which feature a combined net lettable area of 529,981 square feet, are currently 95.1% as at 30 June 2018.
The total cost of the acquisition is expected to be approximately SGD955.9 million including stamp duty, and other professional fees.
The purchase consideration represents a 3.9% discount to the appraised value of SGD945.0 million by Colliers International, and a 2.0% discount to the appraised value of SGD927.0 million by Savills.
OUE Commercial REIT is proposing to partly fund the acquisition via a renounceable 83-for-100 rights issue that will raise gross proceeds of approximately SGD587.5 million, while the balance will be funded with debt.