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

In a largely anticipated move, OUE Commercial REIT has confirmed the divestment of a 50% stake in its flagship grade A office asset, OUE Bayfront.

As reported in November 2020, the REIT was said to have been in discussions with Allianz Real Estate for the divestment.

Related: OUE Commercial REIT in talks with Allianz Real Estate entity for stake in Bayfront asset

OUE Commercial REIT confirmed on 18 Jan that the stake will be divested at an agreed value of SGD1,267.5 million (USD950 million), or SGD3,170 per square foot.

This translates to 26.1% premium over purchase consideration.

OUE Commercial REIT has described the move as being in line with its strategy of actively managing its portfolio to enhance value for unitholders

The REIT’s full statement on the divestment can be viewed here.

OUE Commercial REIT was last done on the SGX at SGD0.39, which implies a distribution yield of 8% 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.