SINGAPORE (Sept 19): Real estate group OUE has entered into sale and purchase agreements to sell OUE Downtown Serviced Apartments and its direct wholly-owned subsidiary, OUE Downtown, for a total of $289 million.
First, indirect wholly-owned subsidiary Alkas Realty has signed an agreement to sell the OUE Downtown Serviced Apartments, together with all plant, machinery and equipment on the property, to DHI Holding for $287.1 million.
At the same time, direct wholly-owned subsidiary OUE Downtown, together with the assets of the business, will be sold to DHI Downtown for $1.9 million.
OUE Downtown Services Apartments, also known as Oakwood Premier OUE Singapore, is the hotel and serviced residences component of the redeveloped OUE Downtown, which occupies the 7th to 32nd storeys of OUE Downtown 1 in the heart of the Central Business District.
The 268-room luxury hotel and serviced residences is managed by Oakwood Worldwide (Asia).
OUE says the RBC Investor Services Trust Singapore, the trustee of OUE Hospitality Sub-Trust, and OUE Hospitality Trust Management, the trustee-manager of OUE Hospitality Business Trust, had declined the offer of right of first refusal to acquire OUE Downtown Serviced Apartments.
In a separate filing on Thursday morning, the trustee and trustee-manager say they had declined the offer because they view that the $289 million acquisition would not be accretive to OUE Commercial Real Estate Investment Trust’s (OUE C-REIT) distribution per unit.
They add that OUE C-REIT will continue to explore opportunities for the acquisition of yield-accretive assets that are in line with its investment criteria and strategy.
Shares in OUE closed flat at $1.46 on Wednesday, while units in OUE C-REIT closed 1 cent higher at 53.5 cents.
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