How OUE could craft its exit strategy for OUE Downtown
One way is to split the S$1.6b mixed-use complex into four parts and sell the offices first as they have stable occupancy rate of 97%
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Kalpana Rashiwala
OUE'S full-year results released recently revealed that its revamped Downtown property in Shenton Way helped to contribute to an increase in the group's revenue.
The mixed-development's retail podium, Downtown Gallery, opened in May last year, followed by the 268-unit Oakwood Premier serviced residences the following month. The remaining component, offices, are not a new addition, although the facade of OUE Downtown 1 tower (which includes some office space) was changed.
OUE Downtown has a total gross floor area of about 1.24 million sq ft and is the reincarnation of the former DBS Towers 1 and 2 and DBS auditorium. OUE, previously known as Overseas Union Enterprise, acquired it in 2010 for S$870.5 million from Goldman Sachs real estate funds, which in turn bought it in 2005 for S$690 million from DBS.
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