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OUE C-REIT closes flat on debut

OUE Commercial Real Estate Investment Trust (OUE C-REIT), the first REIT listing on the Singapore Exchange this year, opened weakly on its debut yesterday amid the broad sell-off in regional markets, but clawed back the early losses to close unchanged.

OUE Commercial Real Estate Investment Trust (OUE C-REIT), the first REIT listing on the Singapore Exchange this year, opened weakly on its debut yesterday amid the broad sell-off in regional markets, but clawed back the early losses to close unchanged.

OUE C-REIT units fell to as low as 77 cents each, 3.8 per cent beneath its initial public offering price of 80 cents, even after strong demand had resulted in the retail tranche of the IPO being subscribed 4.7 times. Over 22 million units had changed hands by the close of trading.

The REIT had raised S$346.4 million from selling 208 million units to retail and institutional investors and an additional 225 million units to cornerstone investors.

OUE C-REIT has a provisional rating of Ba1 from Moody’s Investors Service, one level below investment grade. The rating is in a range that is speculative and subject to substantial credit risk, according to its prospectus. The trust plans to offer a dividend yield of 6.8 per cent for this year with income support from OUE, while without the support, the yield is 5.56 per cent, it said.

OUE C-Reit’s initial portfolio comprises OUE Bayfront in Singapore and Lippo Plaza in Shanghai. AGENCIES

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