OUE Commercial Reits *Official* (SGX: TS0U)

[farouk]

Just read in reitsweek.com that the same folks who brought you the OUE Hospitality Trust will now list the OUE Commercial REIT.

Not sure about others here but it just does not add up for me. Office rents are hitting a glass ceiling and rental is set to go down with so many office properties coming online. Besides their hospitality trust is not even flying.

Anyone subscribing?

 

[taediumv]

Looks like OUE is divesting their assets. Wonder if their shares will drop further after XD.

 

[MikeL09]

Enough of reits.
I will stop buying reits today onwards.

Oops! Sorry DW

 

[Garlic & Butter]

which is which? rent is going up or down?
from yesterday ST:

OFFICE landlords seem to have enjoyed a recovery in this quarter with higher rents on the cards, according to a new report yesterday.
The demand for space is coming from small- and medium-sized enterprises (SMEs), mainly in non-financial industries such as media, information and communications, and businesses in professional and business services, said DTZ Research.

However, while occupancy rates have increased in most areas due to the greater take-up during this period, the islandwide occupancy rate fell by 1.6 percentage points to 94.6 per cent compared with the three months to June 30.
DTZ said that this was due to the completed Asia Square Tower 2, Metropolis Tower 1 and Nexus@one-north. These buildings added more than 1.4 million sq ft of vacant office stock in this quarter.

Ms Cheng Siow Ying, DTZ's executive director of business space, said: "Besides the expansion of space by existing occupiers within the Central Business District (CBD), take-up of office space in this period primarily stemmed from small- to medium-sized firms."


Higher rentals were seen in most areas, particularly in the newer and better quality buildings, said DTZ.
For example, average gross monthly rents in Raffles Place in the CBD are around $9.40 per sq ft this quarter, up 1.3 per cent on the second quarter, according to DTZ.

Rates in the Shenton Way, Robinson Road and Cecil Street area rose 3.4 per cent this quarter to $7.50 per sq ft a month over the previous quarter.
DTZ's Singapore research head, Ms Lee Lay Keng, noted that office space demand will remain modest, "as cost-conscious occupiers still prefer to renew existing leases".

She added: "Average rents in the CBD are anticipated to rise on the back of strong occupancy rates and an expected economic improvement, but this increase will be gradual."

 

[supertanweekiat]

This is call transferring risk to you..

 

[4ndychan]

What's the forum guru's sentiments on this?

 

[Carnage]

Brought to you by the same set of underwriters.

 

[farouk]

This is call transferring risk to you..

My sentiments at first. The skeptic in me insists that in recycling capital, they are packaging the most non-performing assets, bundle them in a REIT, and then let REIT shareholders hang on to it.

Given that Singaporeans queue for REITs IPO like the queue for Hello Kitty at MCdonalds.

 

[Yowzer]

I rent from Mapletree & the rent has been rising all the time. Business associates all say the same thing. Many received letters already informing of pending rises in their own areas.

Who said rent is dropping? Private & public properties are correlated and everything is rising. There may be more office space coming up but projections are still for high occupancy rate. I personally will still be interested in any REITs which leverage from office & industrial space rentals.

 

[farouk]

Singapore Office Rents Fall 16.3%. Rental prices of prime offices in Singapore fell the most anywhere in the world during the 12 months ending March 2013. Data from CBRE. Google it and you will find several sources like yahoo

 

[farouk]

I rent from Mapletree & the rent has been rising all the time. Business associates all say the same thing. Many received letters already informing of pending rises in their own areas.

Who said rent is dropping? Private & public properties are correlated and everything is rising. There may be more office space coming up but projections are still for high occupancy rate. I personally will still be interested in any REITs which leverage from office & industrial space rentals.

Hi Yowzer. If you do not mind me asking may I know where your office is at. Because I just received info from a peer renting at china square saying that his rent has been revised downwards for 2014. China square is in some reit tii if I'm not mistaken. Just curious to see which are the properties in reits where rents are going up.

 

[Paul Lee]

Hi Yowzer. If you do not mind me asking may I know where your office is at. Because I just received info from a peer renting at china square saying that his rent has been revised downwards for 2014. China square is in some reit tii if I'm not mistaken. Just curious to see which are the properties in reits where rents are going up.

If you are referring to China Square Central, its belongs to Frasers Commercial Trust.

[ SOURCE ]

 

[farouk]

If you are referring to China Square Central, its belongs to Frasers Commercial Trust.

[ SOURCE ]

Thanks Paul.

Apparently I just read that when it comes to office reits in Singapore there are generally to different animals. Those below 10000 square meters and those above it. Cbd are those below it and office rents for those are rising. While rents for bigger offices are falling hence the different performance by landlords

 

[Sinkie]

**OFFER SUMMARY**
Issuer: OUE Commercial REIT ("OUE C-REIT")
Sponsors: OUE Limited ("OUE")

Offering Type: Initial Public Offering
Distribution: Regulation S
Exchange: Main Board of Singapore Exchange
Securities Trading Limited

Offering Price: S$0.80 per unit
Distribution Yield
(2014E): 6.8%
Distribution Yield
(2015E): 6.9%

Total offering units
(pre-shoe): 433,000,000 units (approx. S$346mn)

Cornerstone Units: 225,000,000 units (approx. S$180mn)

Cornerstone Investors: Summit SPV (S$100mn), Mr. Gordon Tang
(S$25mn), Mdm Chen Huaidan (S$25mn),
Mr. Yang Dehe (S$20mn) and
RHB Asset Management Sdn Bhd (S$10mn)

Indicative tranche
structure (Subject to clawback & reallocation provisions):
- Placement Tranche: 151,750,000 units (approx. S$121mn)
- Public Offer: 56,250,000 units (approx. S$45mn)

Over-allotment option: Up to 41,600,000 units
(approx. S$33mn)

Total units outstanding
post-IPO: 866,000,000 units (approx. S$693mn)

Free float: 28.4% (pre-shoe) / 33.2% (post-shoe)
(ex. Summit SPV, Mr. Gordon Tang,
Mdm Chen Huaidan)

Sponsor stake: Approx. 50.0% (pre-shoe) /
Approx. 45.2% (post-shoe)

Gearing: 42.3%

Lock-up: 100% for first 180 days; 50% for
additional 180 days for Sponsors.
The Manager (OUE Commercial REIT
Management Pte. Ltd.) has also
undertaken not to offer any units
during the first 180 days

Board Lot: 1,000 units

ISIN: TBD
SEDOL: TBD

Use of proceeds: - Acquisition of IPO Portfolio,
including any repayment and/or
refinancing of existing facilities
- Payment of transaction costs
- Working capital

Initial portfolio:
- The OUE Bayfront Property: located at Collyer Quay in
Singapore's CBD
- The Lippo Plaza Property: located in the commercial district
of Huangpu in central Shanghai, the PRC

JGCs: CIMB, OCBC, SCB
JBRs: CIMB, OCBC, SCB, Citi, DMG, JPM

**MANAGEMENT ROADSHOW**
10 - 14 Jan: Singapore
15 - 16 Jan: Hong Kong

**INDICATIVE TIMETABLE**
Bookbuilding commences: 10 Jan
Bookbuilding ends: 16 Jan
MAS registration of
final prospectus: 17 Jan
Allocations: 17 Jan
Public offer: 17 - 23 Jan
Settlement & Listing: 27 Jan

 

[Mecisteus]

rental rising or falling? which time frame are you referring to?

there is definitely a lot of difference if you compare rental next year with rental next 10 years.

 

[Milo-Dino]

**OFFER SUMMARY**
Issuer: OUE Commercial REIT ("OUE C-REIT")
Sponsors: OUE Limited ("OUE")

Offering Type: Initial Public Offering
Distribution: Regulation S
Exchange: Main Board of Singapore Exchange
Securities Trading Limited

Offering Price: S$0.80 per unit
Distribution Yield
(2014E): 6.8%
Distribution Yield
(2015E): 6.9%

Total offering units
(pre-shoe): 433,000,000 units (approx. S$346mn)

Cornerstone Units: 225,000,000 units (approx. S$180mn)

Cornerstone Investors: Summit SPV (S$100mn), Mr. Gordon Tang
(S$25mn), Mdm Chen Huaidan (S$25mn),
Mr. Yang Dehe (S$20mn) and
RHB Asset Management Sdn Bhd (S$10mn)

Indicative tranche
structure (Subject to clawback & reallocation provisions):
- Placement Tranche: 151,750,000 units (approx. S$121mn)
- Public Offer: 56,250,000 units (approx. S$45mn)

Over-allotment option: Up to 41,600,000 units
(approx. S$33mn)

Total units outstanding
post-IPO: 866,000,000 units (approx. S$693mn)

Free float: 28.4% (pre-shoe) / 33.2% (post-shoe)
(ex. Summit SPV, Mr. Gordon Tang,
Mdm Chen Huaidan)

Sponsor stake: Approx. 50.0% (pre-shoe) /
Approx. 45.2% (post-shoe)

Gearing: 42.3%

Lock-up: 100% for first 180 days; 50% for
additional 180 days for Sponsors.
The Manager (OUE Commercial REIT
Management Pte. Ltd.) has also
undertaken not to offer any units
during the first 180 days

Board Lot: 1,000 units

ISIN: TBD
SEDOL: TBD

Use of proceeds: - Acquisition of IPO Portfolio,
including any repayment and/or
refinancing of existing facilities
- Payment of transaction costs
- Working capital

Initial portfolio:
- The OUE Bayfront Property: located at Collyer Quay in
Singapore's CBD
- The Lippo Plaza Property: located in the commercial district
of Huangpu in central Shanghai, the PRC

JGCs: CIMB, OCBC, SCB
JBRs: CIMB, OCBC, SCB, Citi, DMG, JPM

**MANAGEMENT ROADSHOW**
10 - 14 Jan: Singapore
15 - 16 Jan: Hong Kong

**INDICATIVE TIMETABLE**
Bookbuilding commences: 10 Jan
Bookbuilding ends: 16 Jan
MAS registration of
final prospectus: 17 Jan
Allocations: 17 Jan
Public offer: 17 - 23 Jan
Settlement & Listing: 27 Jan

Sinkie bookbuilding?

 

[itedino]

Paul and dividend warrior: ok to subcribe a not

 

[itedino]

OUE did not state the proposed transaction value. Certain parts of Lippo Plaza, a 36-storey office tower, would be excluded from the deal, including the building’s 12th, 13th, 15th and 16th floors. The acquisition is conditional upon the success of the proposed REIT’s IPO, among other terms.

 

[vinciee88]

42.3% gearing for a 6.X% yield, doesn't look good to me.

Nevertheless, its OUE.

 

[Dividends Warrior]

Paul and dividend warrior: ok to subcribe a not

I am not subscribing.

I eat popcorn and watch show.