OUE REIT Management Pte. Ltd. has secured planning approval to transform the Level 17 chiller system area of OUE Bayfront into prime office space. This conversion, expected to be completed by the first half of 2027, will unlock over 2,100 square metres of office space, enhancing the property’s long-term value and generating additional rental income.
The project is part of a broader sustainability initiative, aligning with OUE Bayfront’s Net Zero Transition Plan and OUE REIT’s ESG Vision 2030. By connecting to the District Cooling System (DCS), OUE Bayfront aims to reduce energy consumption and greenhouse gas emissions, supporting its goal to cut Scope 1 and 2 emissions by 40% by 2030.
The estimated capital expenditure for the conversion is up to S$43m, with a stabilised return on investment projected to exceed 11%. The funding will be sourced from existing loan facilities, ensuring no significant impact on the net tangible assets or aggregate leverage for the financial year ending 31 December 2026.
Chief Executive Officer and Executive Director of the Manager, Han Khim Siew, emphasised the strategic importance of sustainability, stating, “At OUE REIT, we view sustainability not only as a moral imperative, but as a strategic and structural imperative that is integral to delivering long-term value creation.”
OUE REIT, one of Singapore’s largest diversified REITs, continues to focus on sustainability-led asset enhancements to future-proof its portfolio and deliver enduring returns for stakeholders.
