SINGAPORE - Property developer OUE has sold its 33 per cent stake in GIC-backed investment firm Nuvest Capital to the latter's founder Aje Kumar Saigal for US$1 million (S$1.36 million).

The sale was made through its subsidiary OUE Investments (OUEI), the group said in a regulatory filing on Monday night (April 22). As at Dec 31, 2018, the net asset value of Nuvest Capital attributable to the equity stake stood at S$1.37 million.

Following the disposal, Nuvest Capital will cease to be an associated company of OUE Limited. The group added that the disposal is not expected to have a material effect on the net tangible assets or earnings per share of the group for fiscal 2019.

Nuvest Capital is the fund manager of Nuvest Real Return Fund, in which OUE invested US$200 million in 2014 for two million tranche X participating shares at a subscription price of US$100 per share. OUE said at the time that the investment was part of its treasury operations to optimise returns on its available funds.

Nuvest Real Return Fund was launched in 2012 with seed capital from GIC with the objective of achieving annual returns above inflation. The principal and founder of the fund manager Mr Saigal, spent 30 years at GIC since its inception, holding senior leadership roles at the organisation.

OUE shares last closed at $1.76 on Tuesday as at 9.56am, up two cents.