OUE Real Estate Investment Trust (OUE REIT) said on Mar, 24 2026 that it has received planning approval to transform the Level 17 chiller system area at OUE Bayfront into more than 2,100 sq m of prime office space.

The manager, OUE REIT Management Pte. Ltd., expects the conversion to be completed in the first half of 2027. The change follows OUE Bayfront’s ongoing connection to a District Cooling System, which will allow the property to decommission its in-building chiller plant, lower energy consumption and greenhouse-gas emissions, and align with the trust’s target of a 40% reduction in Scope 1 and 2 emissions for commercial assets by 2030.

Capital expenditure for the project is estimated at up to 43 million Singapore dollars, with funding to come from existing loan facilities. The manager projects a stabilised return on investment of more than 11% and does not expect a material impact on the net tangible assets or aggregate leverage of the trust for the financial year ending Dec, 31 2026.

OUE REIT’s portfolio comprises six Singapore properties across office, hospitality and retail segments, with total assets under management of 5.8 billion Singapore dollars as of Dec, 31 2024.