SINGAPORE: The respective managers of OUE Commercial REIT and OUE Hospitality Trust jointly announced the proposed merger of OUEC-REIT and OUEC-Trust.
Tan Shu Lin, Chief Executive Officer of OUE C-REIT’s manager, commented, “This transformative merger creates a diversified, sizeable and liquid REIT, which will significantly enhance our visibility within the S-REITs universe and increase our relevance to a wider investor base. It also enhances the resilience of the enlarged REIT’s income and strengthens our ability to capitalise on further growth opportunities, ultimately enabling us to continue delivering value to unit holders.”
Chen Yi-Chung Isaac, Acting Chief Executive Officer of OUE H-Trust’s managers, added, “We strongly believe in the merits of the merger, which represents the combination of two high-quality and complementary portfolios. This creates a platform of scale equipped with an enlarged capital base and enhanced financial flexibility to drive long-term growth. Backed by continued growth momentum in the commercial sector and a positive outlook for the hospitality industry, the enlarged REIT will be well-positioned to deliver sustainable long-term value creation to its stakeholders”.
The proposed merger will be effected by way of a trust scheme of arrangement, with OUE C-REIT acquiring all the issued and paid-up securities in OUE H-Trust in exchange for a combination of cash and new units in OUE C-REIT.
Stapled security holders of OUE H-Trust will receive S$0.04075 in cash per stapled security and 1.3583 new OUE C-REIT units per stapled security.[the_ad id=”32940″]