If you are an existing shareholder, you should be aware of the proposed acquisition of the office components of OUE Downtown. You might be aware that I actually do like rights issue as they present an opportunity to accumulate more shares at a lower price. However, I have sold all my OUE Commercial REIT today (8,000 units @ $0.605) and these are the reasons why I will not be participating this extremely bad deal (at least for my case).


Some important numbers to take note:
– 83 rights units for every 100 existing units
– issue price of $0.456
– TERP of $0.570
– Pro Forma DPU of $0.0354 vs Current DPU of $0.0467
– Pro Forma NAV of $0.70 vs Current NAV of $0.91
My average price was $0.70 and before the rights issue, the yield on cost was around 6.67% and with a NAV of $0.91, it was trading at >20% discount.