OUE (formerly: Overseas Union Enterprise)

[greengiraffe]

http://news.yahoo.com/u-bank-tower-talle...2U-;_ylv=3 [Article]

Looks like a 'forced' bail out !

(Not Vested)

Hi Nick,

Good things don't come cheap. Cheap things sure got some problems and legacy.

Odd Lot Holder
GG

[lanoitar]

I don't see this purchase as negative, as its done at the trough.

Another smart money is making similar moves too:

http://www.businesstimes.com.sg/specials...m-20130312

[Thriftville]

Indonesia firm takes scorched earth approach to frustrate Ananda’s ASTRO

March 08, 2013

KUALA LUMPUR, March 8 — Indonesia’s First Media has secured the bankruptcy of its holding firm in Jakarta in a bid to frustrate efforts by Malaysian billionaire Ananda Krishnan’s ASTRO to recover funds from a soured joint venture, Singapore’s The Straits Times reported today.

First Media won the order after lodging the unexpected filing to wind up parent company Across Media with the Jakarta commercial courts.

Across Media, a unit of Hong Kong-based Lippo Group controlled by the republic’s Riady family, is currently locked in a legal battle with Ananda’s satellite TV provider ASTRO over the sum of US$44 million (RM137 million).

The amount is part of a larger US$250 million award made in favour of ASTRO in February 2010 by the Singapore International Arbitration Centre (SIAC) following the fallout over the failed TV joint venture.

First Media has filed an appeal over the decision, which is due to be heard in April.

Ananda’s ASTRO had in 2011 secured a garnishee order in Hong Kong for the US$44 million plus interest, alleging Across Media had mischievously transferred the sum to First Media in a bid to prevent the enforcement of the SIAC award.

This ruling was also challenged by First Media, but this was later set aside by a Hong Kong court, prompting the firm to shift the battlefield to Jakarta, where it won an arbitration order for it to be paid the US$44 million by parent Across Media.

Across Media then filed for bankruptcy protection in a bid to delay the payment, but was ordered to provide a supervised debt restructuring plan for creditors’ approval.

It did not do so, however, leading to the current bankruptcy proceedings.

The Indonesian decision has not been well received in Hong Kong, where a High Court alleged that “whole purpose of these actions to frustrate the Hong Kong process”.

“There is no credible explanation as to why First Media had to take the drastic action in bankrupting its own parent company,” the Hong Kong court said.

The acrimony stems from a failed pay television venture, partly owned by unit of First Media in partnership with ASTRO from 2006 to 2008, to provide satellite television service for Indonesians under the ASTRO Nusantara trademark.

ASTRO Nusantara ceased operations in October 2008 due to a commercial dispute between ASTRO and Lippo Group.

The row previously saw Indonesian police seeking Ralph Marshall, the right hand man of Ananda, over fraud and money laundering charges in relation to the deal gone wrong.

Marshall had earlier been accused of forging documents that resulted in some US$90 million in losses for the failed pay TV venture.

[greengiraffe]

Muddy waters lah...

Indonesia firm takes scorched earth approach to frustrate Ananda’s ASTRO

March 08, 2013

KUALA LUMPUR, March 8 — Indonesia’s First Media has secured the bankruptcy of its holding firm in Jakarta in a bid to frustrate efforts by Malaysian billionaire Ananda Krishnan’s ASTRO to recover funds from a soured joint venture, Singapore’s The Straits Times reported today.

First Media won the order after lodging the unexpected filing to wind up parent company Across Media with the Jakarta commercial courts.

Across Media, a unit of Hong Kong-based Lippo Group controlled by the republic’s Riady family, is currently locked in a legal battle with Ananda’s satellite TV provider ASTRO over the sum of US$44 million (RM137 million).

The amount is part of a larger US$250 million award made in favour of ASTRO in February 2010 by the Singapore International Arbitration Centre (SIAC) following the fallout over the failed TV joint venture.

First Media has filed an appeal over the decision, which is due to be heard in April.

Ananda’s ASTRO had in 2011 secured a garnishee order in Hong Kong for the US$44 million plus interest, alleging Across Media had mischievously transferred the sum to First Media in a bid to prevent the enforcement of the SIAC award.

This ruling was also challenged by First Media, but this was later set aside by a Hong Kong court, prompting the firm to shift the battlefield to Jakarta, where it won an arbitration order for it to be paid the US$44 million by parent Across Media.

Across Media then filed for bankruptcy protection in a bid to delay the payment, but was ordered to provide a supervised debt restructuring plan for creditors’ approval.

It did not do so, however, leading to the current bankruptcy proceedings.

The Indonesian decision has not been well received in Hong Kong, where a High Court alleged that “whole purpose of these actions to frustrate the Hong Kong process”.

“There is no credible explanation as to why First Media had to take the drastic action in bankrupting its own parent company,” the Hong Kong court said.

The acrimony stems from a failed pay television venture, partly owned by unit of First Media in partnership with ASTRO from 2006 to 2008, to provide satellite television service for Indonesians under the ASTRO Nusantara trademark.

ASTRO Nusantara ceased operations in October 2008 due to a commercial dispute between ASTRO and Lippo Group.

The row previously saw Indonesian police seeking Ralph Marshall, the right hand man of Ananda, over fraud and money laundering charges in relation to the deal gone wrong.

Marshall had earlier been accused of forging documents that resulted in some US$90 million in losses for the failed pay TV venture.

[cfa]

Lippo has many court case with Carrfore of France in Indonesia also.

[Boon]

OUE Names Three Banks for S$1.0-billion Hospitality REIT: Report
by Admin on Mar 20, 2013 • 6:23 pm

Singapore property firm Overseas Union Enterprise (OUE) is said to have chosen three banks for its planned US$800 million (S$1.0 billion) listing of a hospitality real estate investment trust (REIT) in the second half of the year, Reuters reported Wednesday.

OUE has chosen Credit Suisse, Goldman Sachs and Standard Chartered to advise on the listing, the Reuters report said, citing sources with direct knowledge of the matter.

Led by Indonesian tycoon Stephen Riady, OUE revived plans for the REIT listing soon after it lost the battle to buy Fraser and Neave (F&N) to Thai billionaire Charoen Sirivadhanabhakdi, the 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 also owns commercial properties, had earlier planned a REIT in 2011, but it was delayed.

At that time Bank of America Merrill Lynch (BofA) was roped in for the REIT, but the US bank is no longer in the list of banks selected, one of the Reuters sources said. BofA was also OUE’s adviser on the F&N deal.

OUE has been on the lookout for assets despite its failed bid for F&N.

Recently it bought US Bank Tower in Los Angeles, the tallest US building west of the Mississippi, and related properties for US$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, added the Reuters report.

The REITs raised S$3.4 billion or 68 per cent of the S$5.0 billion of stock sold in Singapore IPOs in the past 12 months, according to data compiled by Bloomberg.

The biggest share sale was the S$1.6 billion raised by Mapletree Greater China Commercial Trust, a REIT that owns assets including the Festival Walk shopping mall in Hong Kong and an office complex in Beijing.

The trust, which was also Asia’s biggest share sale this year, surged 13 per cent since its trading debut on March 7.

More REITs are expected this year. Singapore Press Holdings said a week ago it is exploring a real estate investment trust, which Bank Julius Baer & Co estimates may have S$3.1 billion of assets.

Singapore REITs posted a one-year total return of 45 per cent, trailing Japan’s 63 per cent in Asia. The measure tracking REITs in Singapore climbed 29 per cent in the past year, compared with the 8.2 per cent increase in the Singapore benchmark Straits Times Index.

A total of 30 REITs and property trusts were listed in the citystate with a combined value of S$56.0 billion, making up 6 per cent of the total market capitalisation of stocks traded, said Lawrence Wong, head of listings at the Singapore Exchange.

Singapore also has the highest number of cross-border asset REITs in Asia, he added.

http://bizdaily.com.sg/newsite/oue-names...it-report/

[kayhian]

Overseas Union Enterprise (LJ3.SG) could raise around 841 million Singapore dollars (US$680 million) from its planned listing of hospitality assets into a real-estate investment trust in the second half of this year, providing “fresh dry powder” for future acquisitions, Maybank-Kim Eng says.

OUE, controlled by Indonesia’s Riady family, apparently wastes little time reloading. Last month it bought the 72-storey US Bank Tower in Los Angeles–the tallest building on the U.S. West Coast–for US$367.5 million, just a couple of months after losing a battle for Singaporean conglomerate Fraser & Neave Ltd. to Thai billionaire Charoen Sirivadhanabhakdi.

OUE is likely to seek more assets in the U.S., having previously noted that land costs in some U.S. cities are around 10% those of Singapore’s, with the value of properties potentially doubling or tripling in coming years as the U.S. economy picks up, Maybank-Kim Eng said. It is also looking at assets in tier-three Chinese cities, and may consider expanding its Meritus hospitality brand into Chongqing and Mandarin Gallery retail brand into Beijing, it said.

But Singapore-based OUE isn’t likely to venture into Australia or Europe in the near term, and it remains cautious about investing in the Iskandar Malaysia region, just across the Straits of Johor, because waterfront prices have escalated and other sites are less attractive, Maybank-Kim Eng said.

Assets that could be injected into OUE’s REIT include the Mandarin Gallery mall and Mandarin Orchard hotel in Singapore’s busy Orchard district, the house said. Mandarin Orchard directly benefits from medical tourism because it is near Mount Elizabeth Hospital, and attracts other tourists due to its size and prime shopping location, while Crowne Plaza is connected to Changi Airport and is a short distance from Singapore’s largest convention venue, it said.

[greengiraffe]

I will be very cautious on Riady family - their are financial engineering experts.

I always remember how they deplete Auric Pac's cash pile to what it is today.

Former Executive Yao Chi Wan even joked that his namesake mean Got $, he will make... show me the $ ...

Extra Care Needed
GG

Overseas Union Enterprise (LJ3.SG) could raise around 841 million Singapore dollars (US$680 million) from its planned listing of hospitality assets into a real-estate investment trust in the second half of this year, providing “fresh dry powder” for future acquisitions, Maybank-Kim Eng says.

OUE, controlled by Indonesia’s Riady family, apparently wastes little time reloading. Last month it bought the 72-storey US Bank Tower in Los Angeles–the tallest building on the U.S. West Coast–for US$367.5 million, just a couple of months after losing a battle for Singaporean conglomerate Fraser & Neave Ltd. to Thai billionaire Charoen Sirivadhanabhakdi.

OUE is likely to seek more assets in the U.S., having previously noted that land costs in some U.S. cities are around 10% those of Singapore’s, with the value of properties potentially doubling or tripling in coming years as the U.S. economy picks up, Maybank-Kim Eng said. It is also looking at assets in tier-three Chinese cities, and may consider expanding its Meritus hospitality brand into Chongqing and Mandarin Gallery retail brand into Beijing, it said.

But Singapore-based OUE isn’t likely to venture into Australia or Europe in the near term, and it remains cautious about investing in the Iskandar Malaysia region, just across the Straits of Johor, because waterfront prices have escalated and other sites are less attractive, Maybank-Kim Eng said.

Assets that could be injected into OUE’s REIT include the Mandarin Gallery mall and Mandarin Orchard hotel in Singapore’s busy Orchard district, the house said. Mandarin Orchard directly benefits from medical tourism because it is near Mount Elizabeth Hospital, and attracts other tourists due to its size and prime shopping location, while Crowne Plaza is connected to Changi Airport and is a short distance from Singapore’s largest convention venue, it said.

[kayhian]

I thought they are smart to REIT their hotel properties when market is crazy over REITs now.

It's a pity they lost the fight for F&N to ThaiBev.
If not, they can REIT F&N also.

[propertyinvestor]

OUE obviously has no choice but to launch a REIT because they cannot find a sucker to pay them 1.5billion for Mandarin Orchard.

Whatever happened to the purported sale of Mandarin Orchard huh? Guess, local investors here are suckers for reits. Can parcel any tom dick and harry properties into a trust, load it up with debts and sell it to the market.