The proposed divestment aligns with the REIT manager’s proactive asset management strategy to optimise portfolio composition, strengthen income resilience and bring sustainable return to unitholders, says its CEO Han Khim Siew.
OUE REIT, through its wholly-owned subsidiary, has entered into an agreement to divest the entire equity interest of Lippo Realty (Shanghai), which owns 91.2% share of strata ownership of Lippo Plaza in Shanghai, for RMB1.92 billion ($357.4 million).
Based on Lippo Plaza’s net property income of RMB94.6 million for FY2023 and the agreed property value of RMB1.68 billion, the estimated net property yield is 5.7% per annum.
