OUE property group is planning to dispose the office components of OUE Downtown to OUE Commercial REIT for $908 million on a willing-buyer and willing-seller basis. OUE, the sponsor of says OUE C-REIT, says the acquisition will unlock capital for higher growth reinvestment opportunities, provide a capital efficient platform for the company to pursue its corporate strategy and help it derive stable income. Located on Shenton Way in the CBD, the properties are part of OUE Downtown, a recently refurbished landmark mixed-use development comprising two highrise towers, being a 50-storey building (OUE Downtown 1) and a 37-storey building (OUE Downtown 2). In a report last Fri, OCBC Investment Research was spot on in predicting the proposed disposal. Lead analyst Joseph Ng said OUE Downtown’s offices registered a stable occupancy rate of 95.1% of June 30 with passing rents at $7 psf. With the AEIs completed and asset stabilised, he expects OUE Downtown’s offices could be a candidate for divestment to OUE Commercial REIT.... Continue Reading