OUE to start book building for Reit

SINGAPORE-listed property group OUE Ltd will begin book-building for a commercial real estate investment trust (Reit) listing in the city-state on Jan 13 that may raise as much as US$355 million, the Thomson Reuters publication IFR reported yesterday.

This will be the first major Singapore initial public offering (IPO) this year, which could be followed by US$1 billion IPO of South Korea's Lotte Shopping Co Ltd's Reit after the Chinese New Year holiday.

The OUE Commercial Reit is targeting a market capitalisation of $700 million, and sponsor OUE plans to retain a stake of around 40 per cent.