OUE Commercial REIT Management Pte. Ltd., in its capacity as manager (the "Manager") of OUE Commercial Real Estate Investment Trust ("OUE C-REIT") announced that DBS Trustee Limited, as trustee of OUE C-REIT (the "Trustee"), has established a limited liability partnership, BPH Propco LLP ("BPH LLP") together with ACRE Angsana Pte. Ltd., an SPV managed by Allianz Real Estate Asia Pacific Pte. Ltd. ("ARE"). OUE C-REIT and ARE each holds a 50.0% interest in BPH LLP. The Trustee has concurrently entered into a sale and contribution agreement with BPH LLP for the sale and contribution of the OUE Bayfront property (comprising OUE Bayfront, OUE Tower and OUE Link) to BPH LLP. The agreed value of the OUE Bayfront property is SGD 1,267.5 million, or SGD 3,170 psf and represents 26.1% premium over the purchase consideration of SGD 1,005.0 million. The expected net proceeds from the divestment of 50% interest in the OUE Bayfront property is approximately SGD 262.6 million after taking into account the estimated divestment fee and other divestment-related expenses. Based on the OUE Bayfront property's annualised net property income of SGD 45.8 million for the nine months ended 30 September 2020 and the agreed value of SGD 1,267.5 million, the estimated net property yield is 3.6% per annum. The Trustee, ARE and BPH LLP have also entered into a deed of guarantee and undertaking, whereby the Trustee will guarantee the net property income of the OUE Bayfront property to be at least SGD 50.0 million and SGD 52.5 million for the first year and second year respectively following the completion of the divestment. The net property income guarantee is subject to an aggregate cap of SGD 6.0 million. The Manager and OUE Commercial Property Management Pte. Ltd. will be appointed as the asset manager and property manager to BPH LLP respectively on terms which are consistent with OUE C-REIT's existing fee structure.