Recently, I had taken a look at the history of the Riady family, one of the richest in Indonesia, as part of my series on the Asian Godfathers, a group of wealthy Asian business tycoons. Currently, the family concentrates on real estate and has large business interests in that sector around the globe. In Singapore, the Riadys have influence over a few listed entities that include Overseas Union Enterprise (OUE) Ltd (SGX: LJ3) and a number of real estate investment trusts. Let’s take a closer look at them. Overseas Union Enterprise Overseas Union Enterprise, or OUE…
Currently, the family concentrates on real estate and has large business interests in that sector around the globe. In Singapore, the Riadys have influence over a few listed entities that include Overseas Union Enterprise (OUE) Ltd (SGX: LJ3) and a number of real estate investment trusts. Let’s take a closer look at them.
Overseas Union Enterprise
Overseas Union Enterprise, or OUE for short, was formed in the 1960’s as the property arm of Overseas Union Bank (OUB). In 2001, OUB was acquired by United Overseas Bank (SGX: U11) in 2001 to form what was then the largest bank in Singapore.
OUE in its current incarnation, is both a real estate owner and developer. The properties under its ownership include the Marina Mandarin Singapore, the Crowne Plaza Changi Airport Hotel and the Meritus Pelangi Beach Resort in Langkawi, Malaysia.
Through OUE Hospitality Trust (SGX: SK7), OUE also has interests in the iconic Mandarin Gallery and Mandarin Orchard Singapore along Orchard road, the famous shopping belt in Singapore. OUE owns around 45% of the trust and is also its manager.
The company also has another trust under its banner and that’s OUE Commercial REIT (SGX: TS0U), an aptly named real estate investment trust that owns commercial real estate. Currently, there are two commercial properties in the REIT’s portfolio and they are namely, OUE Bayfront in Singapore and Lippo Plaza in Shanghai.
Other Singapore-listed REITs
First REIT (SGX: AW9U) is a real estate investment trust that focuses on healthcare-related facilities. The REIT predominantly holds assets such as hospitals and nursing homes in Indonesia, Singapore and South Korea. There’s some form of diversification in the REIT though as it also owns a hotel & country club in Indonesia.
The REIT leases many of its hospital assets to PT Lippo Karawaci Tbk, which then runs the healthcare operations under the Siloam Hospital brand. In Singapore, the REIT has interests in three nursing homes, namely Pacific Healthcare Nursing Home, Pacific Healthcare Nursing Home II, and Lentor Residence.
Lippo Malls Indonesia Retail Trust (SGX: D5IU) is another REIT that’s linked to the Riadys. As an owner of retail malls in Indonesia, it is the only REIT in Singapore that has such assets and it offers investors a pure-play exposure to Indonesia’s consumer market. The REIT currently owns 16 retail malls in the country with the majority of them located in the Java region.
Foolish Bottom Line
I’ve already talked about six different listed entities that are linked to the Riadys. That’s a lot, but it’s just the tip of the iceberg. The family also has huge influence on companies that are located in Indonesia, Hong Kong and the United States.
While Mochtar Riady was the one who laid the foundation for the family’s success, it’s now his two sons – Stephen and James Riady – who are actively managing the business and placed in charge of the family’s wealth.
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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Stanley Lim doesn’t own shares in any companies mentioned.