OUE seeks shareholders’ approval to sell OUE Bayfront into its REIT for at least $1 bil Print
Written by The Edge
Wednesday, 20 November 2013 13:06
OUE is seeking approval from its shareholders to sell OUE Bayfront into the commercial real-estate investment trust (OUE C-REIT) it is planning to list for a consideration least $1 billion.
An extraordinary general meeting (EGM) for shareholders to vote on the transaction will be held on December 4.
OUE Bayfront is an 18-storey premium office building with rooftop restaurant premises located at 50 Collyer Quay, which is complemented by retail facilities at its ancillary properties, namely OUE Tower, a conserved tower building located at 60 Collyer Quay with panoramic views of the Marina Bay landscape which is currently occupied by a fine-dining restaurant and OUE Link, a link bridge located at 62 Collyer Quay with retail units.
Based on the valuation of OUE Bayfront by Cushman & Wakefield VHS as at September 30, 2013, the property is valued at $1.01 billion and at $1.4 billion when income support is taken into account.
Assuming that the OUE Bayfront Property is sold for the minimum price of $1 billion, the sale consideration may comprise a cash component of $696.9 million and
a cash-equivalent component comprising units in the commercial REIT worth $308.1 million.
OUE intends to use the cash proceeds for the following purposes to pay down existing debt of US$376.6 million and for general corporate and working capital purposes.
The EGM will also see shareholders voting on OUE's proposal to distribute to shareholders about 25.6% of the company-held OUE H-Trust stapled securities to shareholders, on the basis of 1 company-held OUE H-Trust stapled security for every 6 shares held.
OUE “intends to retain approximately 33 to 35% of the total number of OUE H-Trust stapled securities in issue” after the distribution, it said.
Publish date: 20/11/13