OUE Hospitality Trust launches IPO

Offer price starts at S$0.88.

In a release, Overseas Union Enterprise Limited (OUE) announced that OUE Hospitality REIT Management Pte. Ltd., as REIT Manager of OUE H-REIT and OUE Hospitality Trust Management Pte. Ltd, as Trustee-Manager of OUE H-BT, have launched an initial public offering of Stapled Securities in OUE Hospitality Trust at an offering price of S$0.88 per Stapled Security .

A total of 434,598,000 Stapled Securities (subject to the Over-Allotment Option) are being offered for subscription at the Offering Price and OUE Hospitality Trust is expected to raise approximately S$382 million from the Offering and an additional S$218 million worth of commitments from the Cornerstone Investors, resulting in total gross proceeds of approximately S$600 million to be raised (potentially up to S$660 million if the Over-Allotment Option is exercised in full).

As a result of expressions of interest received from institutional and other investors during the book-building process exceeding the number of Stapled Securities offered under the Placement Tranche, the Stapled Securities have been successfully priced, translating into annualised 2013 distribution yield of 7.36%5 and Projection Year 2014 distribution yield of 7.46% at the Offering Price.

The Prospectus has been registered with the Monetary Authority of Singapore, in connection with the proposed listing of OUE Hospitality Truston the Main Board of the Singapore Exchange Securities Trading Limited.

"OUE Hospitality Trust offers investors an opportunity to invest in a premier portfolio of landmark hospitality and retail assets strategically located in the heart of Singapore’s renowned shopping district, Orchard Road," said the company. "The Sponsor, OUE, has an established track record as a leading real estate owner, developer and operator as well as a hotel operator through its premium brand names. “Meritus”, “Mandarin” and “Meritus Mandarin”, and will hold a 42.7% stake in OUE Hospitality Trust post-listing."