Chinese take up cornerstone of OUE C-REIT IPO

SINGAPORE — Singapore-listed property firm OUE, which is set to start taking orders on Monday for the initial public offering (IPO) of its commercial assets in China and Singapore, is selling close to half of the up to S$400 million deal to cornerstone investors — of which Chinese buyers make up a big part.

According to the OUE Commercial Real Estate Investment Trust (OUE C-REIT) prospectus, it has secured five cornerstone investors — a Malaysian asset management company owned by RHB Investment Bank that is taking a 1.4 per cent stake in the planned REIT, and four Chinese entities or individuals. The biggest slice, a 14.4 per cent stake, is going to investment holding company Wealthy Fountain, which is wholly owned by Mr Tong Jinquan, China’s 35th richest man according to Forbes magazine.

Mr Gordon Tang and his wife, Ms Chen Huaidan —both board members of Singapore-listed property developer SingHaiyai Group — have each agreed to take a 3.6 per cent stake. And Mr Yang Dehe, who now the Hai Run Group of companies, which is involved in trading and investment holding activities, will take a 2.9 per cent stake.

In its prospectus filed with the Monetary Authority of Singapore yesterday, OUE C-REIT said it will sell 866 million units at S$0.80 each, though half of those are being taken by the sponsor, OUE Realty, and so are not included in the IPO. Of the 433 million units remaining, 225 million are going to the five cornerstone investors.

People with knowledge of the deal said that the company will start booking orders early next week and aims to list on the Singapore Exchange by the end of the month. The OUE C-REIT will initially hold two commercial properties: The OUE Bayfront building in Collyer Quay and Lippo Plaza in central Shanghai’s Huangpu district.