OUE REIT listing predicted to raise minimum of $600m

What could the disadvantages be?

According to OSK DMG, Overseas Union Enterprise (OUE) filed its REIT prospectus yesterday, coming on the back of the SPH-REIT filing on 9-July-13.

The OUE REIT listing is expected to raise at least $600mil with OUE retaining 47.9% of the issue, 18.9% for Cornerstone, 29.3% for institutional investors and 3.9% offering to retail.

Here's more from OSK DMG:

The single asset REIT comprised of the Mandarin Orchard hotel (1,051 rooms) and the retail Mandarin Gallery mall (NLA 125k sqft), both of which sits on leasehold land with 43years left. At the offer price of $0.88 - $0.9, the implied FY14E net distribution yield of 7.3% - 7.5% seems relatively attractive (vs SPH REIT 5.8%-6%, CDL-HT 7% and FE-HT 6.1%) while its gearing of 33% allows sufficient capacity for future acquisitions.

However, the high initial yield offer may suggest a higher hurdle for future yield accretive acquisitions, while the short lease duration may compress time frame for acquisitions.

If you've been wondering whether SBR could work for your company — yes, probably.

A lot of the companies we partner with started as readers. They'd been following our coverage for a while, saw their own customers and competitors in it, and eventually asked the obvious question: could we do something with you? The answer is usually yes. The shape of it depends on what you're trying to do.

The options are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. Some partners use one channel; most use a mix. We figure out the right combination by starting with your brief, not with our rate card.

So if the question has been on your mind, here's the easy way to ask it.

We'll tell you honestly whether we can help, and how. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia