OUE Commercial Trust, a property trust controlled by Singapore-listed developer and hotelier OUE, will buy an office and shopping complex in Shanghai ahead of a listing that is likely to take place early next year, according to regulatory filings.
OUE Commercial Trust will acquire the 38-storey Lippo Plaza along Huaihai Middle Road, an upmarket shopping district, from Hong Kong-listed Lippo China Resources, whose chairman Stephen Riady is also the boss of OUE.
Lippo Plaza has been independently valued at 2.03 billion yuan ($413.48 million), according to a filing late on Wednesday by Lippo China Resources to the Hong Kong Stock Exchange.
Lippo China Resources expects to gain a net profit of around HK$168.5 million ($27 million) from the deal, which will involve the sale of holding company Tecwell Group to a unit of OUE Commercial Trust for HK$843.5 million.
OUE, which is controlled by Indonesia’s Riady family, raised $476 million in July through the listing of a hospitality trust in Singapore.
OUE had said previously that OUE Commercial Trust’s initial portfolio could include the OUE Bayfront, an 18-storey office building in Singapore’s central business district.
Publish date: 17/10/13