OUE H-Trust to raise nearly S$240m via rights issue

OUE Hospitality Trust (OUE H-Trust) is carrying out an underwritten rights issue to raise some S$238.6 million to fund the purchase of the Crowne Plaza Changi Airport hotel extension.

Priced at S$0.54 apiece, the new stapled securities will be offered to eligible securityholders at a ratio of 33 rights stapled securities (SS) for every 100 existing stapled securities in OUE H-Trust. The issue price represents a discount of about 29.4 per cent to the closing price of S$0.765 on Monday.

Eligible securityholders who do not want to subscribe for the rights units may sell their rights entitlements during the nil-paid rights trading period from March 18 to 29. Meanwhile, they may also apply for excess rights SS.

OUE Limited, the REIT manager, Golden Concord Asia, OUE Realty and Hennessy Holdings Limited will fully subscribe for their provisional allotment of the rights stapled securities, making up about 44.2 per cent of the rights issue. The remaining rights are underwritten by BNP Paribas, acting through its Singapore branch, DBS Bank Ltd and Credit Suisse (Singapore).

The hotel extension, which is currently under construction, adds 243 rooms to the existing 320-room Crowne Plaza Changi Airport, which OUE H-Trust bought in January 2015.

Completion of the acquisition will take place once the extension is completed in the middle of this year.