SINGAPORE (Oct 10): CIMB is reiterating its “add” call on property developer UOL Group with a higher target price of $7.97 from $7.96 previously, after factoring in the group’s latest property purchases.
In a Friday report, analysts Lock Mun Yee and Yeo Zhi Bin note that the past 12 months have been “particularly fruitful” for UOL in terms of capital deployment, with an attributable $710 million worth of asset acquisitions in Singapore (45%) and UK (55%).
UOL recently partnered with UIC to jointly acquire properties Holborn Island and Raintree Gardens’ enbloc site, which the analysts think will increase UOL’s 2Q16 total asset base by 3.3% to $12 billion., The group’s balance sheet is set to healthy with gearing at 0.34x versus 0.29x previously post-acquisition for the two properties, they add.
