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Singapore property intelligence 8 Apr
By PropInvestSG  •  April 9, 2019
OUE Commercial REIT (OUECT) and OUE Hospitality Trust (OUEHT) in proposed merger to create one of the largest diversified S-REITs with total assets of S$6.8b, according to company announcements. OUECT will offer to buy OUEHT in a cash and stock deal , offering S$0.04075 in cash and 1.3583 new OUECT units or at a consideration of S$0.747066 (1.6% above OUEHT’s last traded price, or 0.4% discount to OUEHT’s NAV of S$0.75/unit), based on last closing price of S$0.52/0.735 for OUECT/OUEHT, to create a single entity that will remain listed on SGX. The proposed merger is expected to be DPU accretive to both OUECT (+2.1%) and OUEHT (+1.4%) for pro-forma FY18, and will be NAV accretive to OUEHT (+18.7% to S$0.89/unit from S$0.75/unit) and NAV dilutive to OUECT (-12.9% to S$0.61/unit from S$0.70/unit). Post-merger, OUECT’s pro-forma aggregate leverage will rise 1%pt to 40.3% from 39.3%, while the number of outstanding OUECT units will rise 87.4% to 5,362m units...
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By PropInvestSG
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