Friday, August 31, 2012
Key Beneficiaries of the Thomson Line
Key Beneficiaries of the Thomson Line:UOB Kay Hian has a very useful report on the Key Beneficiaries of the Thomson line. House identifies key listed beneficiaries as City Developments, Keppel Land, OUE, GuocoLand, UOL, UIC, SingLand, Frasers Centrepoint Trust, Starhill Global REIT and Wee Hur. House tip residential developments along the line to see 5-10% gains. New developments with unsold units include City Developments’s Up@ Robertson Quay, Keppel Land’s Marina Bay Suites, UIC’s V on Shenton, UOL and SingLand’s Bright Hill Drive site. The resale prices of developments will see modest 5-10% gains. Retail REITs will benefit from increased shopper traffic. Causeway Point, which is owned by Frasers Centrepoint Trust, will be a key beneficiary as the Thomson Line will enhance connectivity to Thomson and Lentor, bringing greater shopper traffic. Orchard malls such as Wisma Atria and Ngee Ann City, which are partially owned by Starhill Global REIT, will benefit from improved connectivity to Northern Singapore. Office developers to see improved office demand. New upcoming office developments by GuocoLand (Peck Seah Street site), Keppel Land (Marina Bay Financial Centre Tower 3) and OUE (DBS Tower upgrade and retail podium development) will see improved tenant demand on the back of improved connectivity to their developments. Industrial developments in Woodlands to see higher take-up. Industrial developments in Woodlands by OKH (Primz Bizhub and Woodlands Horizon) and Wee Hur (Harvest @ Woodlands) will also see higher take-up from SMEs and industrialists.