OUE's $355m Singapore REIT IPO to be launched next week

Marks Singapore's first major IPO of 2014, says Reuters.

According to a report by Reuters, Singapore-listed property firm Overseas Union Enterprise will begin book-building for a commercial real estate investment trust listing in the city-state on Jan. 13 that may raise as much as $355 million, the Thomson Reuters publication IFR reported on Tuesday.

This will be the first major Singapore IPO of 2014, which could be followed by the South Korea's Lotte Shopping Co Ltd's $1 billion REIT after the Chinese New Year holiday.

The OUE Commercial REIT is targeting a market capitalisation of S$700 million-S$800 million ($631 million)and sponsor OUE plans to retain a stake of around 40 percent.

At present, its listed peers trade at an average yield of 6.5 percent.

Read Reuters' full report here.