OUE in talks with potential buyer for US Bank Tower

MAINBOARD-LISTED property group OUE is in talks for a potential sale of US Bank Tower in Los Angeles, the board disclosed in a bourse filing late on Tuesday.

OUE is now in "non-binding exploratory discussions" with a possible institutional buyer, said the update. Marketing of the property (primarily in the United States) started in January 2019.

But the board told shareholders that, while negotiations are now underway, there is no assurance that these talks will lead to a definitive or binding agreement.

"The company will make an appropriate announcement in the event of entry into any definitive agreement in relation to the proposed sale," the board said.

OUE noted in a business update in mid-May that global public-health policies taken to contain the deadly novel coronavirus had had a negative near-term financial impact.

The effects of the coronavirus pandemic have included a shutdown of most of the tenants' offices in US Bank Tower, which OUE bought for US$367.5 million in 2013.

OUE shares closed up by S$0.03, or 2.61 per cent, at S$1.18 on Tuesday, before the news.