OUEHT to acquire Crowne Plaza Changi and Crown Plaza Changi Extension for a total of $495m

Upon completion of both projects.

OUE Hospitality Trust announced that it has entered into conditional agreements to acquire Crowne Plaza Changi Airportfor S$290m and the Crowne Plaza Changi Airport Extension for S$205m upon its completion from a subsidiary of its sponsor, OUE Limited.

CPCA has 320 guestrooms, while CPEX will add another 243 rooms after its completion. The combined assets are expected to provide an acquisition NPI yield of 4.6%. This would be funded by debt and/or equity. 

According to OUEHT, assuming the properties are acquired wholly by debt, this would increase its pro forma DPS by 0.16 S cents from CPCA and 0.24 S cents from CPCA and CPEX combined. 

OCBC says that its gross gearing would increase to 46.7% after the two acquisitions, if financed fully by debt. Assuming S$125m of equity is raised at an illustrative price of S$0.88 per stapled security, OUEHT estimates that these transactions would raise its pro forma DPS slightly by 0.04 S cents from CPCA and 0.05 S cents from the combined two assets.