OUE C-Reit redeems $155m convertible units in One Raffles Place deal

THe units will be redeemed on 1 June.

OUE Commercial REIT Management Pte Ltd has announced, in its capacity as manager, that it will redeem 155m convertible perpetual preferred units (CPPUs) of OUE Commercial Real Estate Investment Trust, worth $155m.

In a notice, the manager of OUE C-Reit announced an irrevocable redemption of the CPPUs which were issued as part of the payment purchase consideration to OUE Limited for OUE C-REIT’s acquisition of an 83.33% indirect interest in OUB Centre Limited which owns 81.54% of the beneficial interest in One Raffles Place.

After the redemption, 220m CPPUs would remain.

“The Manager is carrying out the Redemption as part of its proactive capital management strategy to continually review and optimise OUE C-REIT’s capital structure for sustainability over the longer-term. The Redemption will reduce the CPPUs outstanding, allowing theManager to mitigate dilution in distribution per unit from potential conversion of CPPUs into units of OUE C-REIT in the future,” the notice said.