OUE    Last:1.06    -0.01

OUE LTD worth buying for long term

I like the assets and the fact that it is backed from Lippo Group

sgtrader101      ( Date: 24-Jan-2014 23:58) Posted: Any comment on this ipo? Gonna shoot up or down? WanSiTong      ( Date: 24-Jan-2014 20:51) Posted:   OUE COMMERCIAL REAL ESTATE INVESTMENT TRUST, FIRST MAIN BOARD IPO OF THE YEAR, ATTRACTS STRONG RESPONSE FROM INVESTORS  Public Offer of 56,250,000 Units 4.76 times subscribed by retail investors  Placement Tranche of 151,750,000 Units fully subscribed on the back of strong demand from institutional and other investors  Expects to commence trading on the Main Board of the Singapore Exchange Securities Trading Limited (the " SGX-ST" ) on 27 January 2014 at 2.00 p.m. Singapore, 24 January 2014 ? OUE Commercial Real Estate Investment Trust (" OUE C-REIT" ), a Singapore REIT established with the principal investment strategy of investing in a portfolio of income-producing real estate used primarily for commercial purposes in financial and business hubs within and outside of Singapore, has garnered strong support from investors for its initial public offering of 208,000,000 Units (the " Offering" ).

 

 

The board of directors of OUE Commercial REIT Management Pte. Ltd., in its capacity as manager



 

of OUE C-REIT (the " Manager?) wishes to announce that in connection with the Offering, and for

 

 

the purpose of Regulation 3A(2)(g) of the Securities and Futures (Market Conduct) (Exemptions)

Regulations 2006, Clifford Development Pte. Ltd. has granted the Joint Bookrunners, the

Over-Allotment Option, exercisable by Standard Chartered Bank, Singapore Branch (the



 

" Stabilising Manager" ) (or any of its affiliates or other persons acting on behalf of the Stabilising

 

 

Manager), in consultation with the other Joint Bookrunners, in full or in part, on one or more

occasions, only from the date of admission of OUE C-REIT to the Official List of the Singapore



 

Exchange Securities Trading Limited (the ?SGX-ST?) (the " Listing Date" ) but no later than the

earlier of (i) the date falling 30 days from the Listing Date, or (ii) the date when the Stabilising

Manager (or any of its affiliates or other persons acting on behalf of the Stabilising Manager) has

bought, on the SGX-ST, an aggregate of 41,600,000 Units, representing 20% of the total number of

Units in the Offering, to undertake stabilising actions to purchase up to an aggregate of 41,600,000

Units (representing 20% of the total number of Units in the Offering) at the Offering Price. The

exercise of the Over-Allotment Option will not increase the total number of Units outstanding.

In connection with the Offering, the Stabilising Manager (or any of its affiliates or other persons

acting on behalf of the Stabilising Manager) may, in consultation with the other Joint Bookrunners

and at its discretion, over-allot or effect transactions which stabilise or maintain the market price of

the Units at levels that might not otherwise prevail in the open market. However, there is no

assurance that the Stabilising Manager (or any of its affiliates or other persons acting on behalf of

the Stabilising Manager) will undertake stabilising action. Such transactions may be effected on the

SGX-ST and in other jurisdictions where it is permissible to do so, in each case in compliance with

all applicable laws and regulations, including the Securities and Futures Act, Chapter 289 of



Singapore, and any regulations thereunder.

 

 

sgtrader101      ( Date: 24-Jan-2014 23:58) Posted: Any comment on this ipo? Gonna shoot up or down? WanSiTong      ( Date: 24-Jan-2014 20:51) Posted:   OUE COMMERCIAL REAL ESTATE INVESTMENT TRUST, FIRST MAIN BOARD IPO OF THE YEAR, ATTRACTS STRONG RESPONSE FROM INVESTORS  Public Offer of 56,250,000 Units 4.76 times subscribed by retail investors  Placement Tranche of 151,750,000 Units fully subscribed on the back of strong demand from institutional and other investors  Expects to commence trading on the Main Board of the Singapore Exchange Securities Trading Limited (the " SGX-ST" ) on 27 January 2014 at 2.00 p.m. Singapore, 24 January 2014 ? OUE Commercial Real Estate Investment Trust (" OUE C-REIT" ), a Singapore REIT established with the principal investment strategy of investing in a portfolio of income-producing real estate used primarily for commercial purposes in financial and business hubs within and outside of Singapore, has garnered strong support from investors for its initial public offering of 208,000,000 Units (the " Offering" ).

 

Any comment on this ipo? Gonna shoot up or down?

WanSiTong      ( Date: 24-Jan-2014 20:51) Posted:   OUE COMMERCIAL REAL ESTATE INVESTMENT TRUST, FIRST MAIN BOARD IPO OF THE YEAR, ATTRACTS STRONG RESPONSE FROM INVESTORS  Public Offer of 56,250,000 Units 4.76 times subscribed by retail investors  Placement Tranche of 151,750,000 Units fully subscribed on the back of strong demand from institutional and other investors  Expects to commence trading on the Main Board of the Singapore Exchange Securities Trading Limited (the " SGX-ST" ) on 27 January 2014 at 2.00 p.m. Singapore, 24 January 2014 ? OUE Commercial Real Estate Investment Trust (" OUE C-REIT" ), a Singapore REIT established with the principal investment strategy of investing in a portfolio of income-producing real estate used primarily for commercial purposes in financial and business hubs within and outside of Singapore, has garnered strong support from investors for its initial public offering of 208,000,000 Units (the " Offering" ).

 

 

OUE COMMERCIAL REAL ESTATE INVESTMENT TRUST, FIRST MAIN BOARD IPO OF THE YEAR, ATTRACTS

STRONG RESPONSE FROM INVESTORS

 Public Offer of 56,250,000 Units 4.76 times subscribed by retail investors

 Placement Tranche of 151,750,000 Units fully subscribed on the back of strong demand from institutional and other investors

 Expects to commence trading on the Main Board of the Singapore Exchange Securities Trading Limited (the " SGX-ST" ) on 27 January 2014 at 2.00 p.m.

Singapore, 24 January 2014 ? OUE Commercial Real Estate Investment Trust (" OUE C-REIT" ), a Singapore REIT established with the principal investment strategy of investing in a portfolio of income-producing real estate used primarily for commercial purposes in financial and business hubs within and outside of Singapore, has garnered strong support from investors for its initial public offering of 208,000,000 Units (the " Offering" ).

 

Then again the owner do hold over 68% of the share, so I guess it's still a stable company to hold for long term investment. Or that may be the detering factor as the owner have too much control.

 

I highly doubt there are anyone that's playing contra here based on the volume and the price fluctuation.

Vested and accumulated for almost a year.. happy to receive dividend on multiple occasions but frustrating to see my paper loss is more than dividend collected.

 

I guess the reason for the drop in price is everyone expecting a special dividend.

Getting rid of those playing contra this week. After everything settle down, the price will go back to it true value.

 

 

OUE really highly undervalued....... PB (x) (FY14 FY15  ) is  only 0.5

ie Market price is only 50% of it's NAV 



With the strong Balance sheet , shareholders should be rewarded handsomely.

Huat arh! 



 

WanSiTong      ( Date: 22-Jan-2014 14:43) Posted:   Stocks with special dividend potential Company /TP/ Rating / Div yield %(FY14 FY15  ) / PE (x) /(DB EPS)(FY14 FY15  ) / PB (x)(FY14 FY15  ) / ROE %(FY14 FY15  ) City Developments/ 10.55/ Hold/ 1.4 1.4/ 14.2 12.7 /1.0 1.0 /7.8 8.2 M1 /3.72/ Buy/ 5.1 5.9 /16.6 14.4/ 7.3 6.8 /44.6 48.8 OUE/ 2.76 /Buy /2.4 2.4/ 28.2 23.0/ 0.5 0.5/ 1.9 2.4 SATS/ 3.54/ Buy/ 4.4 5.0 /17.0 15.2 /2.5 2.3 /14.7 15.8 Singapore Airlines /8.80/ Sell/ 3.2 3.0/ 27.0 27.1/ 0.9 0.9 /3.6 3.4 Source: Deutsche Bank

 

  Stocks with special dividend potential

Company /TP/ Rating / Div yield %(FY14 FY15  ) / PE (x) /(DB EPS)(FY14 FY15  ) / PB (x)(FY14 FY15  ) / ROE %(FY14 FY15  )

City Developments/ 10.55/ Hold/ 1.4 1.4/ 14.2 12.7 /1.0 1.0 /7.8 8.2

M1 /3.72/ Buy/ 5.1 5.9 /16.6 14.4/ 7.3 6.8 /44.6 48.8

OUE/ 2.76 /Buy /2.4 2.4/ 28.2 23.0/ 0.5 0.5/ 1.9 2.4

SATS/ 3.54/ Buy/ 4.4 5.0 /17.0 15.2 /2.5 2.3 /14.7 15.8

Singapore Airlines /8.80/ Sell/ 3.2 3.0/ 27.0 27.1/ 0.9 0.9 /3.6 3.4

Source: Deutsche Bank

 

Singapore Strategy - Stocks with special dividend potential

Written By Stock Fanatic on Wednesday, January 22, 2014

  Overseas Union Enterprise ? following spinoff of assets

We believe that OUE is likely to pay out a special dividend following the spinoff of its OUE Bayfront asset and the listing of OUE Commercial REIT. Recall that following the listing of OUE Hospitality REIT, the company paid a special dividend of 20cents/share and a further 1:6 dividend in specie of OUEHT. (Read Report

 

 

Share price forecast

 

The H-reits is not attractive at all. Give shareholder the feeling management is just trying to dump this s*** on them. I am vested and I am NOT looking forward to the news at all!

noslen      ( Date: 20-Jan-2014 18:03) Posted: I think there's no mention of giving out special dividend with the proceeds from the sales... so OUE is just as unattractive as the C-REITS. Only bonus to look forward to is the distribution of the H-REITS scrip.

 

I think there's no mention of giving out special dividend with the proceeds from the sales... so OUE is just as unattractive as the C-REITS.

Only bonus to look forward to is the distribution of the H-REITS scrip.

 

Looks like a roller coaster ride down.

IPO not well received?

 

OUE Commercial REIT - IPO Highlights

Written By Stock Fanatic on Monday, January 20, 2014

OUE Commercial Real Estate Investment Trust (OUE C-REIT) is launching its IPO at an offer price of S$0.80 per unit. We highlight the key considerations below for investors.

Portfolio

■ The initial portfolio of OUE C-REIT comprises two commercial properties, namely OUE Bayfront and Lippo Plaza that are located in Singapore and Shanghai with an aggregate GFA of about 105,296.1 sq m and a total appraised value of S$1,623.6 mln as at Sept 2013. The overall committed occupancy rates for the OUE Bayfront and Lippo Plaza were 96.1% and 88.2% respectively.

Sponsor

■ OUE C-REIT is backed by OUE - a diversified real estate developer owned by Indonesia?s Lippo Group. The Sponsor will hold a 45.2% stake in OUE C-REIT post-listing (assuming the Over-allotment Option is exercised in full). 

The sponsor has also granted a right of first refusal (ROFR) over its income-producing properties including 

i) One Raffles Place  

ii) OUE Downtown 2 and Downtown Gallery and 

iii) U.S. Bank Tower. 

This will provide OUE C-REIT with access to a visible acquisition pipeline and increase its IPO portfolio GFA to over 4.5 times when acquired.

Yield & Valuation

■ We note that the Sponsor will provide income support to OUE C-REIT for a period of 5-year from the listing date. Based on the offering price of S$0.80, this translates to:

FY14 projected yield : 6.80%

FY15 projected yield : 6.89%

Discount to NAV : 23.9%

■ Aggregate gearing / Avg cost of debt H? : 42.3% / 2.5% per annum

IPO STATISTICS
Sponsor:	Overseas Union Enterprise Limited (OUE)
Lead Manager:	Standard Chartered, CIMB & OCBC Bank
Joint Global Coordinator and Issue Managers:	Citi, J.P. Morgan & OSK/DMG
Prospectus:	Click here
Offer Price:	S$0.80 per unit
Offering Size:	208mln Units (subject to Over-Allotment Option), comprising Placement Tranche of 151.75 mln Units Public Offer of 56.25 mln Units
Market Capitalisation:	S$1.39 billion based on IPO price
2014 projected yield:	6.8%
2015 projected yield:	6.89%
Aggregate Gearing:	42.3%
Initial Properties:	1) Singapore OUE Bayfront 2) Shanghai Lippo Plaza Property
Listing status:	Mainboard of Singapore Stock Exchange (?SGX?)
Indicative IPO Timetable :
Open (Public Application):	Friday, 17 January 2014, 5:00 pm
Closing (Public Application):	Thursday, 23 January 2014, 12:00 noon
SGX-ST trading Commencement:	Monday, 27 January 2014, 9:00 am (on ?ready? basis)

Use Of Proceeds

■ The total gross proceeds of about S$346.4 mln will be mainly used for the acquisition of the IPO Portfolio, repayment of the Existing Offshore Facilities, refinancing the Existing Onshore Facility, transaction costs as well as working capital purposes.

Our View

■ Despite the high headline yield, we note that FY14 and FY15 distribution yield would have been lower at 5.56% and 5.75% respectively if excluding the effects of the income support arrangement. Moreover, with interest rates set to rise, we could see higher borrowing cost when most of its debts mature in 2017. In our view, this could partially offset any potential growth in DPU.

■ We are also concerned with its relatively high gearing ratio of 42.3% as OUE C-REIT may have to resort to equity fund raising either in the form of a rights issue or private placements for any future acquisitions.

Key Risks

■ Downside includes concentration risk i.e heavily reliant on OUE Bayfront for about 67% of its gross revenue non-renewal of leases/loss of key tenants/negative rental reversion as well as borrowing limitation.

Cornerstone Investors

■ Summit SPV, Mr Gordan Tang, Mdm Chen Huaidan, Mr Yang Dehe and RHB Asset Management

 

 

 

OUE Commercial Reit IPO opens this evening  , prices units at S$0.80



  http://infopub.sgx.com/Apps?A=COW_CorporateAnnouncement_Content& B=AnnouncementToday& F=1028748& fileId=OUE_C-REIT_IPO_Launch_Press_Release.pdf

  SINGAPORE ? OUE Commercial Real Estate Investment Trust (REIT) has priced its units at S$0.80 each for its initial public offering (IPO).

At that price, the REIT?s distribution yield would be 6.8 per cent for this year, OUE said in a statement today (Friday).

The IPO comprises 208 million units, comprising 56.25 million units that will be made available to the public with a further 151.75 million units in the placement tranche.

The REIT?s initial portfolio comprises two commercial properties: the OUE Bayfront located at Collyer Quay in Singapore?s central business district and Lippo Plaza in central Shanghai.

Ms Tan Shu Lin, CEO and Executive Director of OUE C-REIT said that the IPO gives ?investors an opportunity to invest in a premier portfolio of landmark commercial properties in prime business districts of Singapore and Shanghai with an attractive and stable distribution yield and potential upside for capital appreciation.?

The public offer opened today (Friday) and closes at noon on Thursday. The REIT is due to makes its trading debut on the Singapore Exchange on Jan 27.

  OUE Commercial Reit IPO opens this evening

  The initial public offering of office landlord OUE Commercial Real Estate Investment Trust (OUE C-Reit) is slated to start this evening, according to a prospectus released on the Monetary Authority of Singapore's website.

The offer will close at 12pm on Jan 23 and trading of units on the Singapore Exchange will begin on Jan 27 at 2pm.

The offer of 208 million units is at a price of 80 cents per unit. Some 56.3 million units will be offered to the public and 151.8 million units to institutional and other investors.

Excluding income support, the distribution yield for 2014 is forecast to be 5.56 per cent. Including income support, it is 6.8 per cent.



 



 

 

Don't think it will stay quiet any longer... the huge block at 2.50  will be cleared soon and should move up.

 

 

Why so quite? Still no news yet...........



 

WanSiTong      ( Date: 09-Jan-2014 21:04) Posted: OUE?s $451 mil Singapore REIT IPO to be launched next week Tags: Overseas Union Enterprise Written by Reuters     Tuesday, 07 January 2014 22:23 Singapore-listed property firm Overseas Union Enterprise will begin book-building for a commercial real estate investment trust listing in the city-state on Jan. 13 that may raise as much as US$355 million ($451 million), the Thomson Reuters publication IFR reported on Tuesday. This will be the first major Singapore IPO of 2014, which could be followed by the South Korea?s Lotte Shopping Co Ltd?s US$1 billion REIT after the Chinese New Year holiday.

 

Recommendation: ACCUMULATE

Previous Close: S$ 2.48

Fair Value: S$ 2.78

 

·                  OUE Commercial REIT lodged preliminary prospectus with MAS

·                  Initial Portfolio ? The OUE Bayfront Property and The Lippo Plaza Property

·                  IPO to raise S$346 million

·                  Indicative Distribution Yield of 6.8% in 2014, 6.89% in 2015

·                  Maintain Accumulate Rating with revised TP $2.78

Phillip   

 

Singapore Property- REITs? and developers? results

preview.

Upcoming implementation of FRS 110 requires developers to consolidate REITs onto

their balance sheets as they are deemed to have control over REITs. Overall financial

impact is not expected to be significant, although key impact would be on higher debt

and asset levels, leading to deterioration in gearing and debt ratios. Developers

impacted include CapitaLand, City Developments, ARA Asset Management and Keppel

Land.

Maintain OVERWEIGHT as the market has priced in an overly bearish scenario for

property and REITs stocks on expectations of a rise in interest rates with the Fed

tapering. Tapering will have minimal impact on short-term rates and we expect a growth

pick-up to offset a rise in long-term rates. We are already factoring in a 3% rate for bond

yields (60bp higher than the current yields of 2.4%) and we are also expecting property

prices to fall 5-10% in 2014, with volumes to moderate 20-30%. We prefer diversified,

deep-value developers and high-beta REITs in the office space with OUE, Ho Bee and

CapitaCommercial Trust (CCT) as our top BUYs.