OUE said to price commercial trust IPO at 80 cents per unit for 6.8% yield

Singapore property developer Overseas Union Enterprise (OUE) is said to be planning to price the initial public offering (IPO) of its office trust at 80 cents per unit, according to reports.

That would raise about $400 million in the listing of OUE Commercial Trust, a Bloomberg report said on Thursday, citing two people with knowledge of the matter.

The price would result in a 6.8 per cent yield for this year and 6.9 per cent for fiscal 2015,

The trust will hold commercial properties including the OUE Bayfront office tower in Raffles Place. Marketing of the IPO is said to be kicking off next week.

This will be OUE's second trust to be listed in seven months, after OUE Hospitality Trust went public in July last year.

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