Find out what makes OUE Hospitality Trust the 'pure Orchard Road play'

That's in the REITs/Business Trust arena.

According to OCBC, OUE Hospitality Trust (OUEHT) is a stapled group consisting of OUE Hospitality Real Estate Investment Trust (OUE H-REIT), a REIT under which the initial portfolio is held, and OUE Hospitality Business Trust (OUE H-BT), a dormant business trust. 

The initial portfolio of OUE H-REIT comprises Orchard Road area’s largest hotel, the 1,051-room Mandarin Orchard Singapore (MOS) and the 196,336 sq ft GFA Mandarin Gallery (MG).

Here's more from OCBC:

MOS is a prominent, upscale hotel located along Orchard Road while MG is a notable landmark with 152 metres of prime Orchard Road frontage.

These assets make OUEHT the only pure Orchard Road play in the REITs/Business Trust space. This initial portfolio has an aggregate value range of S$1,705m-S$1,756m, based on independent valuation estimates. Approximately 69% of the valuation is from MOS.

The current oversupply situation in the Singapore hospitality sector is a known concern. Given this, we are pleased to note that MOS clocked 3.3% RevPAR growth for pro forma 1Q13. It is also worthwhile noting that 46.7% of MG’s leases by NLA have attractive step-up rental increases of 5.5% p.a., with only 20.7% of all leases by NLA expiring in FY13 and FY14

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