Focus on Singapore immigration, focus on Singapore's economy and culture
Lippo Limited (00226.HK) and its 56%-owned subsidiary Hongkong Chinese Limited (00655.HK) announced that their Singapore-listed joint venture, OUE, intends to establish a Real Estate Investment Trust named OUE Hospitality Real Estate Investment Trust. OUE will inject its interests in the Mandarin Orchard Singapore hotel and the Mandarin Gallery retail mall, along with their related plant and machinery, into the REIT. The minimum consideration is 1.7 billion Singapore dollars, which will be satisfied in cash and stapled securities of OUE Hospitality Trust. Upon completion, a special one-tier tax-exempt dividend will be declared to all OUE shareholders.
The announcement stated that if the transaction is completed at the minimum consideration, both Lippo and Hongkong Chinese expect to record a significant profit (before non-controlling interests) of approximately 2.3 billion in their share of the joint venture's results for the year ending March 31, 2014.
