Singapore complex sells for $1.27b
OUE Commercial REIT has acquired a partial interest in the One Raffles Place office complex in Singapore. It is the Singapore-based REIT’s first acquisition since its initial public offering in January 2014. The sales price is S$1.72 billion, or S$2,382 per square foot ($1.27 billion/$1,769 per square foot).
The seller was the REIT’s sponsor, OUE Ltd.
Under the deal, OUE Commercial REIT plans to buy a stake of between 75 percent and 83.33 percent in OUB Centre Ltd., which owns One Raffles Place. OUB Ltd. is the registered owner of the property and it owns 81.54 percent of the beneficial interest in the property. This will give the REIT an effective interest of between 61.16 percent and 67.95 percent in One Raffles Place.
One Raffles Place comprises two class A office towers and a retail podium. The property is viewed as the most accessible office location in the CBD and is expected to remain a focal point of the CBD even with the expansion