SINGAPORE — Overseas Union Enterprise (OUE) said it had received approval from the Singapore Exchange to list a hospitality-focused real-estate investment trust.
The hotel and office developer did not state the size and timing of the initial public offering (IPO) for the proposed OUE Hospitality REIT, but people with knowledge of the deal have said the IPO could raise up to US$800 million (S$998 million) in a third-quarter flotation.
The listing could be Singapore’s third-largest IPO this year, bolstered by strong demand for REITs and business trusts as investors look for steady income streams and attractive yields.
“We are still in a long period of time where even if interest rates globally increase, they’ll still be low by historic standards, very low,” said Mr Vincent Fernando, analyst at Religare Capital Markets. “So, I think the demand for yield will still be strong.”
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