OFFICE landlord OUE Commercial Real Estate Investment Trust (OUE C-Reit) is offering units at 80 cents each for its proposed $346 million listing on the Singapore Exchange.
This works out to an indicative distribution yield of 6.8 per cent for this year, and 6.89 per cent for next year including income support, said the Reit's preliminary prospectus filed Friday.
The income support lasts for five years and applies to OUE Bayfront in Collyer Quay, one of the vehicle's two properties.
The vehicle also holds Lippo Plaza in central Shanghai, a 36-storey commercial building used for office and retail purposes.
Without income support, OUE C-Reit's projected distribution yield will be 5.56 per cent this year and 5.75 per cent for 2015, said the preliminary prospectus.
The Reit is sponsored by OUE, formerly known as Overseas Union Enterprise, a developer controlled by Indonesia's Riady family.
The document said that 208 million units will be offered to the public, though there was no breakdown of how many units will be in the placement tranche and how many in the public tranche.
Separately, 225 million units will be sold to cornerstone investors including RHB Asset Management, a subsidiary of Malaysia's RHB Investment Bank, an an investment firm wholly-owned by China property tycoon Tong Jinquan.
Apart from these, 433 million of OUE C-Reit's units will be issued to a wholly-owned unit of OUE as part payment for OUE Bayfront.
The sale of the offering and cornerstone units will raise total gross proceeds of $346.4 million.