OUE to acquire 60% stake in Bowsprit
Main Board of the Singapore Exchange Securities Trading-listed (SGX Main Board-listed) integrated property developer OUE Limited (OUE) and its listed subsidiary, OUE Lippo Healthcare (OUELH), announced the proposed acquisition of a 60 percent and 40 percent stake, respectively, in Bowsprit Capital Corp., the manager of SGX Main Board-listed First REIT.
The property portfolio managed by Bowsprit was valued at approximately S$1.3 billion ($950 million) as of June 30, 2018.
The Bowsprit acquisition is part of OUE’s ongoing strategy to create a sizeable asset management platform, comprising diversified REITs.
“Asset management business is a key component of OUE’s business and growth strategy,” said Dr. Stephen Riady, OUE's executive chairman. “The Bowsprit acquisition, combined with our existing REITs’ portfolios and completion of OUE Downtown injection into OUE Commercial REIT, will bring our AUM to approximately S$8 billion ($5.8 billion) by this year and we plan to grow it to more than S$10 billion ($7.2 billion) by 2019.”
OUE currently through its two REITs, OUE Commercial REIT and OUE Hospitality REIT, has total assets under management of approximately S$5.7 billion ($4.2 million) as of June 30, 2018.
