OUE Commercial REIT makes weak debut in Singapore
SINGAPORE (Reuters) - Units of OUE Commercial Real Estate Investment Trust (C-Reit), controlled by property and hotel group OUE, traded just below their initial public offering (IPO) price of $0.80 per unit after the IPO raised $346 million.
The Reit traded at $0.785, with more than 8.8 million units changing hands in the first few minutes of trading. OUE C-Reit is the latest addition to the 25 Reits listed in Singapore as companies take advantage of tax incentives and investor demand for high-yield securities.
OUE C-Reit sold 433 million units and offered a yield of 6.8 per cent for 2014. Cornerstone investors subscribed for 225 million units or more than half of the deal.
OUE C-Reit's initial asset portfolio comprises OUE Bayfront Property in Singapore and Lippo Plaza Property in Shanghai.