Singapore-listed developer Overseas Union Enterprise (OUE) is looking to include Shanghai’s Lippo Plaza in the initial portfolio of its proposed OUE Commercial Trust.
Last month, OUE announced plans to set up a commercial-focused REIT in Singapore, although it did not provide any details on the size or timing of an IPO. Nonetheless, sources with knowledge of the deal said the REIT could raise up to S$700 million through an IPO in Q1 2014.
In a stock exchange filing, OUE revealed that it will acquire Lippo Plaza from Hong Kong-listed Lippo China Resources. However, the 12th, 13th, 15th and 16th floors in the 36-storey office tower will be excluded from the deal.
OUE and Lippo China Resources are both controlled by Indonesia’s influential Riady family, with Stephen Riady, son of Lippo founder Mochtar Riady, the executive chairman of both companies.
Aside from Lippo Plaza, the group said its REIT also plans to acquire the OUE Bayfront office development (pictured) in Singapore.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email firstname.lastname@example.org