OUE Real Estate Investment Trust (OUE REIT) said on Jun, 25 2026 that its trustee, DBS Trustee Limited, has signed a put-and-call option agreement on Jun, 24 2026 to sell the leasehold interest in the 575-room Crowne Plaza Changi Airport hotel for 500 million Singapore dollars to OUE TC TM Pte. Ltd., the trustee-manager of OUE TC Airport Hotel Trust.

The consideration, negotiated on a willing-buyer-willing-seller basis, is about 1.3% above the average of two independent valuations of 492 million and 495 million Singapore dollars.

Net cash proceeds are estimated at 498.5 million Singapore dollars after divestment costs of roughly 1.5 million Singapore dollars. OUE REIT intends to use the funds mainly to reduce debt, which would lower aggregate leverage from 41.5% to 36.6% as at Mar, 31 2026. About 20 million Singapore dollars will be returned to unitholders via special distributions over the two years following completion.

The transaction is classified as an interested person transaction under SGX Listing Manual Chapter 9 and as an interested party transaction under the MAS Property Funds Appendix because the buyer is an associate of OUE REIT’s sponsor, OUE Limited. Independent unitholder approval will be sought at an extraordinary general meeting; related parties will abstain from voting.

A divestment fee of approximately 2.5 million Singapore dollars, equal to 0.5% of the sale price, will be paid to the REIT manager in units that cannot be sold for one year.

Completion is conditional on unitholder approval, the consent of Changi Airport Group as lessor, and simultaneous transfer of the hotel operating business to the purchaser.