Singapore-listed Orchard Parade Holdings Limited, the hotel and property arm of Far East Organization (FEO), is seeking shareholders' approval to divest three hospitality assets into a real estate investment trust (REIT) to be listed on the Singapore Exchange Limited (SGX).
Under the REIT transaction, OPHL's hospitality assets, namely Orchard Parade Hotel, Albert Court Village Hotel and Central Square Village Residences, will be injected into the proposed Far East Hospitality Trust for at least S$702 million. OPHL will then acquire a 33% stake in the REIT manager and the Trustee-Manager.
In addition, OPHL will also undergo an asset swap transaction with FEO to acquire a portfolio of medical suites in Novena Medical Centre and Novena Specialist Centre, as well as the entire hospitality management business of FEO.
The group also intends to change its name to Far East Orchard Limited to better reflect its close alignment with its substantial shareholder and to leverage on the Far East brand.
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