Overseas Union Enterprise considering REIT IPO

Overseas Union Enterprise (OUE) is planning to raise up to S$1 billion from the listing of its hospitality assets in Singapore this year, Dow Jones Newswires reported, citing two people with knowledge of the deal.

OUE could launch an initial public offering for a hospitality-focused real-estate investment trust (REIT) in the third quarter of the year, the sources said, according to the report.

A spokeswoman for Overseas Union confirmed to Dow Jones that the company is considering listing at least two of its Singapore assets through a REIT. The five-star Mandarin Orchard hotel and the adjoining Mandarin Gallery shopping mall are the main candidates for the REIT’s initial portfolio, while the Crowne Plaza Changi Airport hotel could also be added, she said.

“The REIT option is a good way for us to unlock value in those properties while retaining control over the assets,” said the spokeswoman, who declined to be named.

Source : Today – 27 Feb 2013

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