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Two OUE Reits join consolidation trend with proposed merger

Deal will yield diversified Reit with commercial property and hospitality assets worth S$6.8 billion; increased liquidity expected to raise unit price

Published Mon, Apr 8, 2019 · 09:50 PM

oue commercial reit

Singapore

CONSOLIDATION in the Reit sector appears to be gaining momentum - two OUE units announced a merger on Monday to create a S$6.8 billion diversified real estate investment trust (Reit) whose unit price could rise over time with increased liquidity and institutional interest.

Under the proposed scheme, OUE Commercial Real Estate Investment Trust (OUE C-Reit) will pay each holder of OUE Hospitality Trust (OUE H-Trust) stapled security S$0.04075 cash plus 1.3583 new OUE C-Reit units.