OUE REIT proposes $500m Crowne Plaza Changi Airport sale

Unitholders may receive $20m in staggered special distributions.

OUE REIT is proposing to divest Crowne Plaza Changi Airport for $500m.

Net cash proceeds from the proposed transaction are expected to be about $498.5m, the trust’s manager, OUE REIT Management Pte. Ltd., said in a bourse filing.

The proceeds may be used for debt repayment, acquisitions, asset enhancement works, unit buybacks, or capital distributions to unitholders.

The manager also plans to distribute $20m of the proceeds to unitholders as special distributions over the first two years after the sale, subject to completion.

The sale price represents a 1.3% premium to the average of two independent valuations.

The sale is expected to result in a net deficit of approximately $15m against book value after accounting for estimated divestment costs of about $4m and the property’s net book value of about $511m as at 31 December 2025.

Assuming the divestment and the termination of the master lease agreement were completed on 1 January 2025, OUE REIT’s distribution per unit would rise by 5.8% on a FY2025 pro forma basis after the special distribution.

If the net cash proceeds are used to repay debt, the REIT’s aggregate leverage would fall to 36.6% from 41.5%.

About 94.3% of its assets under management will remain in Singapore after the divestment. Its office segment will contribute more than 54.3% of total revenue on a pro forma basis.

Crowne Plaza Changi Airport is a 575-room hotel located at 75 Airport Boulevard. It is held under a leasehold estate that commenced on 9 June 2017 and expires on 29 August 2083.

The people you want to reach are already in this room.

Every quarter, SBR lands on the desks of the founders, CFOs, and directors running Asia's most consequential companies. Every day, they open our newsletter and read our website. It's a room that took twenty years to build — and it's the one most of our partners are trying to get into.

The good news is that the door is open. We work with companies on thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The shape of the right partnership depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If you have something this room should know about, tell us. We'll tell you honestly whether we can help, and how.

No rate cards until we understand the brief. 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