🏙️ [S-REIT Ambassador Diaries] : Exclusive Insights from OUE REIT– An Attractive Proxy to Singapore’s Stability and Economic Growth

 

It was a pleasure meeting Ms Mary Ng and Ms ChuXi Fong from OUE REIT over lunch at Chatterbox at Mandarin Gallery – another of their prime assets, located in the heart of Orchard Road.

OUE REIT is well known to many. Its assets include iconic landmarks like OUE Bayfront, just across from Marina Bay Sands, and One Raffles Place – which was even featured in the LEGO Architecture Skyline Collection. See my picures 😉 

 

 Key Takeaways from the Conversation:

**🗝️ 3 Reasons OUE REIT Stands Out** 

1️⃣ **100% Singapore-Centric, 100% Stability** 

 - Forget global volatility. Their iconic assets – **One Raffles Place** (even LEGO immortalized it!), **OUE Bayfront** (Marina Bay Sands’ chic neighbour) – thrive on Singapore’s *AAA-rated stability* and SGD’s safe-haven status. 

*My take*: In a world chasing shiny overseas yields, OUE’s hyper-local focus is a **sleep-well-at-night** play. 

2️⃣ **Office Supply Crunch = Landlord Power** 

 - With *limited new CBD office supply* and hybrid work stabilizing, OUE’s prime towers are poised for **rental upside**. 

 - Fun fact: Their green-certified office buildings now command **premium tenants** – think ESG-driven MNCs and fintech disruptors. Not to forget energy efficient by having built in burners in Mice event pantry.

3️⃣ **Debt Drama? Not Here.** 

 - While others panic over rate cuts, OUE slashed borrowing costs to **4.2%** (March 2025) and sits at **37.1% gearing** assuming debt pare down post-Lippo Plaza divestment. 

 - *Translation*: More room to pivot when opportunities strike. 

What to watch out for?

** Fears on potential rate-cut delay rises – but OUE REIT has substantially lowered its debt cost as of 31 March 2025 – and with further declines expected as SORA continues to trend down.

** Proceeds from Lippo Plaza’s sale are *still unallocated*. Will they repay debt (safe) or look for new opportunities?

 **Tourism’s Slow Burn**: Their hospitality assets (like Crowne Plaza Changi Airport) are recovering, but patience is key as global travel normalizes. 

### **🤝 Let’s Talk Strategy** 

OUE isn’t for thrill-seekers – it’s for investors craving **stability with optionality**. 

*P.S.👉 for proof I was there – yes, check out my pictures

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👉Connect at ohlh@phillip.com.sg

👍 Sreits shared previously:

Post on United Hamsphire US reit: https://lnkd.in/gF_f9kWb

Post on Sasseur reit: https://lnkd.in/gaGgk93T

Post on CICT: https://lnkd.in/gryUxSqh

Post on Suntec reit visit: https://lnkd.in/g69dXApy

 

🚀Ignite Your Portfolio :https://lnkd.in/gu_TBeGb