Stephen Riady buys GCB from OUE unit for S$95m

Stephen Riady buys GCB from OUE unit for S$95m

Thu, Aug 15, 2019

JANICE HENG


PROPERTY developer OUE's executive chairman and controlling shareholder Stephen Riady is buying a good class bungalow at Nassim Road from an OUE subsidiary for S$95 million, OUE announced in a regulatory filing on Wednesday night.

OUE's indirect wholly-owned unit OUE Reef Development has entered a sale and purchase agreement with Dr Riady for the 3,182 sq m plot at 26A Nassim Road and the property on it.

The sale is in its ordinary course of business, said OUE. Completion of the sale and purchase of the property shall take place on Dec 31, 2019.

OUE Reef Development acquired the plot in 2016. The temporary occupation permit for the property which it built was obtained on Aug 6, 2019.

The property was valued on the basis of market value as at June 25, 2019, at S$87 million by Cushman and Wakefield VHS and S$85.5 million by Knight Frank, for an average market value of S$86.25 million. The S$95 million consideration for the sale is 10.1 per cent higher than this.

"The sale price was arrived at after taking into account various factors, including the independent valuation reports by the valuers," said OUE.

Under listing rules, the deal is an interested person transaction. Dr Riady has a deemed interest in about 68.65 per cent of OUE's issued shares, excluding treasury shares. He has recused and will continue to recuse himself from the board's decision-making in relation to the transaction.

OUE said that its audit committee, having considered the terms of the transaction, is of the view that they are fair and reasonable, and are not prejudicial to the interests of the company and its minority shareholders.

The transaction is not expected to have a material impact on OUE's net tangible assets or earnings per share for the year ending Dec 31, 2019.