OUE Hospitality Said to Raise $476 Million in Singapore Offering

Overseas Union Enterprise Ltd. (OUE),

which is buying California’s tallest building, raised S$600

million ($476 million) in a Singapore initial public offering of

its hospitality and retail assets, said two people with

knowledge of the matter.

OUE Hospitality Trust sold 681.8 million units at 88

Singapore cents, the people said, asking not to be named as the

information is private. The units were offered in a range of 88

Singapore cents to 90 Singapore cents, the IPO prospectus shows.

OUE follows an IPO of retail assets owned by Singapore

Press Holdings Ltd. (SPH), which raised S$504 million after pricing at

the top of the marketed range yesterday. REITs and business

trusts were the biggest fundraisers in Singapore’s initial

public offering market in the past year, accounting for $4.16

billion of the $6.2 billion of stock priced, according to data

compiled by Bloomberg.

At 88 cents, OUE Hospitality Trust (OUEHT) is offering a yield of

7.46 percent based on fiscal 2014 projections, according to a

prospectus filed in Singapore last week. SPH’s yield is

projected at 5.79 percent for 2014, based on the 90 Singapore

cents IPO price set on Tuesday.

T.L. Woo, a spokeswoman for OUE, declined to comment.

A business hotel next to the Singapore airport and two

hospitality assets in China, may be offered to OUE Hospitality

Trust, according to the IPO prospectus. The properties, which

have a total valuation of S$413 million as at Dec. 31, could

potentially double the number of hotel rooms owned by the trust,

according to the document.

OUE is controlled by Executive Chairman Stephen Riady, a

son of Mochtar Riady, who controls Indonesia’s Lippo Group.

Lippo’s businesses include real estate, financial services and

food across Asia. The company said earlier this year it’s buying

the U.S. Bank Tower in Los Angeles, the tallest in the West

Coast state, for $367.5 million.

The share sale was managed by Credit Suisse Group AG,

Goldman Sachs Group Inc. and Standard Chartered Plc.

To contact the reporter on this story:

Joyce Koh in Singapore at

jkoh38@bloomberg.net

To contact the editor responsible for this story:

Philip Lagerkranser at

lagerkranser@bloomberg.net

OUE Hospitality Said to Raise $476 Million in Singapore Offering