Indonesian Tycoon Mochtar Riady’s OUE REIT Seeks Buyers For Prime Singapore CBD Tower

Why It Matters

Divesting a premier CBD asset signals confidence in strong market liquidity and could unlock value for unitholders, while underscoring Singapore’s status as a hotspot for institutional real‑estate investment.

Key Takeaways

• OUE REIT puts One Raffles Place up for sale.
• Reserve price S$2.4 billion, 24% above Dec 2025 valuation.
• Strong demand for Grade A CBD assets in Singapore.
• Singapore commercial investment volumes rose 18% to S$33.9 bn.
• OUE REIT shares jumped up to 2.8% after announcement.

Pulse Analysis

The Riady family’s OUE Commercial REIT has placed its marquee asset, One Raffles Place, on the market, marking one of the most high‑profile sales in Singapore’s office sector this year. The 62‑story tower, together with an adjoining 38‑story block and a six‑storey retail podium, offers more than 65,000 sqm of prime leasable space in the heart of the financial district. By engaging global advisers CBRE and JLL, OUE signals a disciplined exit strategy aimed at maximising proceeds, with a reserve price of S$2.4 billion that exceeds the building’s recent valuation by roughly a quarter.

The timing aligns with a broader wave of investor enthusiasm for Singapore’s commercial real estate. Lower interest rates and the Singapore dollar’s safe‑haven perception have driven institutional appetite for Grade‑A CBD assets, where supply is constrained. CBRE data shows total investment in offices, hotels and retail jumped 18% to S$33.9 billion in 2025, the strongest eight‑year performance. Parallel transactions, such as Royal Holdings’ S$250 million Orchard Road shophouse sale and Frasers Property’s S$418 million residential‑retail block, illustrate a market flush with capital seeking high‑quality properties.

For OUE REIT unitholders, the potential divestiture could translate into a premium distribution or reinvestment capital, bolstering the fund’s balance sheet and dividend sustainability. The announced price premium also sets a benchmark for comparable assets, potentially lifting valuations across the sector. However, the sale remains subject to market interest and regulatory clearance, leaving some execution risk. Should the transaction close, it would reaffirm Singapore’s role as a premier destination for real‑estate investors and could encourage other owners to monetize premium holdings amid the current liquidity boom.

Indonesian Tycoon Mochtar Riady’s OUE REIT Seeks Buyers For Prime Singapore CBD Tower

Courtesy of OUE REIT

OUE Commercial REIT—controlled by Indonesian tycoon Mochtar Riady and his family—is seeking buyers for One Raffles Place, one of the tallest skyscrapers in the Singapore central business district, tapping robust demand for commercial properties in the city‑state.

Located at the center of the bustling Raffles Place CBD, One Raffles Place comprises a 62‑story office tower, a 38‑story block and a six‑story retail podium with a combined gross leasable space of over 65,000 square meters. Property consultants CBRE and JLL are jointly handling the sale of the iconic property.

The proposed sale of the property by owners OUE REIT and United Overseas Bank was first reported by Business Times, which had estimated a reserve price of as much as S$2.4 billion ($1.9 billion)—about 24 % above the valuation of One Raffles Place as of end‑December 2025.

Owners of One Raffles Place are conducting an exercise to gauge market interest on the property, the REIT’s manager said in a statement on Friday. “The manager wishes to advise that there is no assurance that any binding agreement or any transaction will materialize,” it said. “The manager will determine the appropriate action in due course taking into account the results of the exercise and the best interests of all unitholders of OUE REIT.”

OUE REIT is the Singapore property‑management unit of the Riady family’s OUE Ltd, which is run by Mochtar’s son, Stephen. With a net worth of $2.4 billion, the family’s Lippo group has interests in real estate, retail, media, healthcare and education. OUE REIT shares gained as much as 2.8 %, while those of OUE jumped up to 4.2 % during the morning trading in the city‑state.

The Singapore‑listed company is seeking to divest One Raffles Place amid strong investor appetite for commercial properties in the city‑state. Investment volumes in Singapore hotels, offices and retail assets climbed 18 % to S$33.9 billion in 2025, the highest in eight years, driven by lower interest rates in the Lion City, according to CBRE.

“There’s strong institutional investor demand for high‑quality CBD grade A assets with limited new supply and firm demand,” said Vijay Natarajan, an analyst at RHB Bank in Singapore. The city‑state is seeing strong capital inflows as the Singapore dollar is seen as a safe‑haven currency.

Other property owners are also taking advantage of investor demand for such Singapore properties. Last month, Royal Holdings—controlled by property tycoon Raj Kumar and his son Kishin RK—put up for sale a cluster of shophouses in Singapore’s Orchard Road shopping precinct for S$250 million. Next door, Thai billionaire Charoen Sirivadhanabhakdi’s Frasers Property and other owners are also seeking buyers for the residential and retail block behind the Centrepoint shopping mall for S$418 million via a collective sale.