The divestment consideration of $500 million translates to a 1.3% premium to the average of two independent valuations, but this also represents a $15 million loss against the asset’s book value.
Changi Airport is now “in the rear-view mirror” for OUE REIT, says OCBC Group Research analyst Ada Lim, following news of its proposed divestment of Crowne Plaza Changi Airport to improve financial flexibility, crystallise value and recycle capital.
OUE REIT announced pre-market on June 25 that it will divest the 575-room hotel ahead of the expiry of its master lease in 2028.
