OUE REIT Unlocks S$357.4 million through Divestment of Lippo Plaza Shanghai
[龇牙] We are pleased to share that OUE REIT, through its wholly owned subsidiary, has entered into an agreement with an unrelated third party on 20 Dec 2024 to divest the entire equity stake interest of Lippo Realty (Shanghai) Limited which owns 91.2% share of strata ownership of Lippo Plaza in Shanghai for a sale consideration of RMB 1,917.0 million (approximately S$357.4 million) and an agreed property value of RMB 1,680.0 million (approximately S$313.2 million).
Mr Han Khim Siew, Chief Executive Officer of the Manager, said, “The proposed divestment aligns with the Manager’s proactive asset management strategy to optimise portfolio composition, strengthen income resilience, and bring sustainable return to OUE REIT’s Unitholders. Lippo Plaza is a non-core asset, contributing only 6.6% of OUE REIT’s total portfolio revenue as of September 2024. The Property’s shortening leasehold tenure and vintage building specifications have started to impact its valuation and competitiveness, especially with the current supply overhang in the Shanghai market. The stewardship of Lippo Plaza has now been entrusted to a committed long-term investor attracted by the Property’s very prime location.”
“With no plans to further expand our footprint in China, this divestment offers an opportunity to monetise the asset and redeploy the proceeds towards more strategic uses, strengthening OUE REIT’s balance sheet and enhancing financial flexibility for future growth opportunities,” Mr Han concluded.
Announcement: https://investor.ouereit.com/newsroom/20241220_220414_TS0U_S6QEBTH4AYNGI652.1.pdf
Press Release: https://investor.ouereit.com/newsroom/20241220_220414_TS0U_S6QEBTH4AYNGI652.2.pdf
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