, Singapore

OUE sells hotel and serviced residence businesses for $289m

Both components will be bought by DHI Holding.

OUE has signed deals to divest its 268-room hotel and serviced residences OUE Downtown Serviced Apartments for a total purchase consideration of $289m, according to an exchange filing.

Alkas Realty, an indirect wholly-owned subsidiary of the firm, will sell its luxury serviced residences Oakwood Premier OUE Singapore to DHI Holding (S) for $287m, including all plant, machinery and equipment located in the property.

Meanwhile, the second sale involves group’s direct wholly-owned subsidiary OUE Downtown (OUEDTPL) that will divest its hotel component and assets to DHI Downtown for $1.9m.

OUE assured that both transactions are not expected to have a material effect on the net tangible assets or earnings per share for the financial year ending 31 December.

Before the two deals, OUE attempted to sell its serviced apartments to OUE Hospitality Trust (OUE H-Trust). The latter firm refused as “acquiring Oakwood Premier OUE Singapore based on the proposed terms would not be accretive to OUE CREIT’s distribution per unit.” 

Follow the link for more news on

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Exclusives

Is HDB resale a good investment?
OrangeTee’s Dallas Hassan and Huttons Asia Real Estate Groups’ Lee Sze Teck answer frequently-asked questions on HDB.
Spoof proof: How the new SMS Sender ID Registry prevents phishing
Phishing remains a huge problem in Singapore, with reported incidents jumping from 16 to 5,020 within four years.