A BUYER has expressed interest in the Mandarin Orchard Singapore and its affiliated shopping mall, Mandarin Gallery, both of which are owned by Singapore-listed property developer Overseas Union Enterprise (OUE).
OUE revealed in a filing on the Singapore Exchange yesterday that it had offered an unnamed potential buyer exclusive rights to conduct preliminary due diligence on the two properties.
The 1,051-room Mandarin Orchard Singapore – managed by Meritus Hotels & Resorts – and Mandarin Gallery were collectively valued at S$1.7 billion (US$1.4 billion) last year in the company’s annual report, with the hotel worth S$1.18 billion and the mall, S$520 million.
OUE, which derives 65 per cent of its revenue from hotel operations, emphasised in its filing that “no firm decision (had) been taken and no definitive agreement (had) been entered” into thus far.
The property developer bought Crowne Plaza Singapore last year, which is connected to Changi International Airport’s Terminal 3.
