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United Engineers can now focus on operational growth, starting with asset enhancement

PC Lee
PC Lee4/2/2018 10:55 AM GMT+08  • 2 min read
United Engineers can now focus on operational growth, starting with asset enhancement
SINGAPORE (Apr 2): United Engineers can now focus on operational growth, says CIMB, following the completion of the recent takeover exercise.
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SINGAPORE (Apr 2): United Engineers can now focus on operational growth, says CIMB, following the completion of the recent takeover exercise.

In a Mar 30 report, analyst Lock Mun Yee says UE should start with low-hanging opportunities to unlock value from its properties such as UE Bizhub City, through increasing property utilisation or optimising the size and use of its hospitality assets.

CIMB's scenario study shows that increasing floor area utilisation of the former by 5-15% would add between 4 cents and 13 cents to UE's RNAV. This does not include organic improvement in rents due to the ability to command higher rates from the upgraded property.

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