OUE C-REIT to buy OUE Downtown offices for $908m

They will issue 1.29 billion units to partially fund the acquisition.

OUE Commercial Real Estate Investment Trust (OUE C-REIT) will acquire the office component of OUE Downtown for $908m from OUE subsidiary Alkas, an announcement revealed.

To partially fund the deal, OUE C-REIT will issue 1.29 billion new units which are ‘underwritten and renounceable’ rights to raise about $587.5m.

According to the firm, the proposed rights issue will fully be underwritten by Credit Suisse. The bank will be joined by OCBC as lead managers for the rights issue.

OUE C-REIT believes that the deal will pose higher growth reinvestment opportunities and future business plans of the firm.

“It will create opportunities for the Company to recycle its capital to maximise overall returns to shareholders as a result of the release of proceeds to the company,” they explained.

Located in Shenton Way, OUE Downtown includes two high-rise towers with 50 and 30 storeys.