OUE

OUE: Article on BT highlights that Mandarin Gallery and Mandarin Orchard Hotel could be sold to a US property mgr Pramerica and a Middle East party, rumoured to be Abu Dhabi Invt Authority. Pramerica Asia is the real estate invt mgmt arm of Prudential Financial. Both parties are said to be given exclusivity to perform due diligence on the assets. Another touted party is Saudi Prince Alwaleed’s Kingdom Hldgs. Mandarin Orchard Hotel was valued at $1.18b (revaluation surplus or divestment gains of approx $1.18 per share) and Mandarin Gallery at $520m end of last year. OUE owns the Crowne Plaza Changi Airport Hotel and has previously said that it would consider spinning off its hotel assets into a REIT. Some RNAV estimates have placed co at $3.60 to $4.63 per share. Co currently trades at P/B 0.8x.