Ho Bee

Ho Bee: CIMB revisits its valuations for Ho Bee. Maintains its Outperform call, raises RNAV for lower cap rates, which increases its TP to $2.21 (30% discount to RNAV) from $1.93. Notes the stock trades at almost 30% discount to book, compared to the long term avg of 10%. Believes 2013 could see a play for quality assets, with Metropolis likely to be a well sought after property. Notes demand for invmt assets and quality office properties with large floor plates places Metropolis in good stead for a potential divestment in 2013. Estimates that 50-60% of space could be pre-committed when leases are signed given the strong interest expressed so far, ahead of the initial target of 25-30%. Highlights potential tenants incl P&G (160k sf), Shell (120k sf), NOL (100-300k sf ), and GlaxoSmithKline (60k sf) out of ~1m sf of leaseable space. Ho Bee is +2.4% at $1.91, with share price likely also partially supported by the on going share buybacks.