OUE Commercial REIT's OUE Bayfront in Singapore. (Photo: REITsWeek)

OUE Commercial REIT has confirmed that it is in talks with an entity linked to Allianz Real Estate with regards to the sale of a stake in OUE Bayfront.

The confirmation was issued in response to local media reports, noting that the deal is expected to be priced at about SGD3,200 per square foot of net lettable area.

“The manager wishes to clarify that while it is currently in exclusivity with an entity linked to Allianz Real Estate with respect to the sale of a partial stake in OUE Bayfront, negotiations between the parties and due diligence by the purchaser are currently still ongoing and parties have yet to enter into any binding agreement for the sale.

“Accordingly, there is no certainty that any transaction will materialise”, said the REIT, adding that it will make an announcement when there are further developments.

OUE Bayfront is an 18-storey Grade A office property within Singapore’s central business district.

It features 37,000 square feet of net lettable area, and it is currently 99.4% occupied.

OUE Commercial REIT was last done on the SGX at SGD0.385, which implies a distribution yield of about 8.1% according to data compiled on the Singapore REITs table.

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By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.