By Saeed Azhar
SINGAPORE, March 20 Singapore property firm
Overseas Union Enterprise (OUE) has chosen three banks
for its planned $800 million listing of a hospitality real
estate investment in the second half of the year, sources said.
The plan comes as 2013 is shaping up as a busy year for REIT
IPOs in Singapore, which are attractive to investors looking for
steady income streams.
OUE chose Credit Suisse, Goldman Sachs and
Standard Chartered to advise on the listing, sources
with direct knowledge of the matter said.
Led by Indonesian tycoon Stephen Riady, OUE revived plans for
the REIT listing soon after it lost the battle to buy Fraser and
Neave Ltd to Thai billionaire Charoen
Sirivadhanabhakdi, sources said.
OUE's hotel properties include Mandarin Orchard Singapore,
Marina Mandarin Singapore, Meritus Pelangi Beach Resort & Spa
Langkawi, Meritus Mandarin Haikou and Meritus Shantou China.
The firm, which owns commercial properties and hotels, had
earlier planned a REIT in 2011, but it was delayed.
At that time Bank of America Merrill Lynch was roped in for
the REIT, but the U.S. bank is no longer in the list of banks
selected, one of the sources said.
Bankers see this as a surprising development because BofA
had also advised OUE on the F&N deal.
Nomura analysts said in a note last week that primary equity
raising in the real estate investment trust sector this year
could surpass the previous record of S$2.1 billion set in 2007.
Mapletree Greater China Commercial Trust, a trust backed by
Temasek Holdings Pvt Ltd, last month raised $1.3
billion through its Singapore IPO, selling shares at the top of
a marketing range and becoming the city-state's largest REIT
Singapore Press Holdings earlier this month said
it is exploring the listing of a real estate investment trust.
OUE has been on the lookout for assets despite its failed bid
Recently it bought U.S. Bank Tower in Los Angeles, the
tallest U.S. building west of the Mississippi, and related
properties for $367.5 million.
The sources declined to be identified as OUE had yet to
publicly reveal the names of the banks involved in the listing.
OUE did not reply to emails and phone calls seeking comment.
Credit Suisse and Goldman Sachs declined comment. Standard
Chartered wasn't immediately available to comment.