I am vested in both OUE Commercial Trust (OUE C) and OUE Hospitality Trust (OUE H)

But I am not taking up the offer by OUE C for OUE H as I don’t find the offer by the former compelling at all.

First, it is not a cash buyout. I ended up holding more OUE C units, which I am already very exposed.

Second, OUE C is not paying any premium over the OUE H’s latest Net Asset Value of 75 cents. Based on OUE C last traded price of 52 cents, it is only valuing OUE H at 52*1.3583 + 4.075 = 74.7 cents, which in fact is below that the stated NAV.

Third, I don’t really see any synergy between OUE C and OUE H. They are in different asset classes and are exposed to different risk and value drivers. I think it requires a different skill set