OUE

OUE: Could see positive sentiment after grp announced that it has picked Credit Suisse, Goldman Sachs and Standard Chartered for its planned $1 bil (US$800m) listing of a hospitality REIT in 2H13. Sources declined to be identified as OUE had yet to publicly reveal the names of the banks involved in the listing. Recall last wk DBSV had an unrated report, where grp believe OUE is likely to include its flagship Meritus Mandarin Hotel and Crowne Plaza Changi Airport Hotel in SG and potentially include the converted towers at Twin Peaks and DBS Tower in any potential listing. The listing could potentially reap a valuation surplus of up to $1b in value for the group.. Group’s portfolio is currently undergoing transformation via the addition of retail space at One Raffles Place retail podium and 6 Shenton Way and growing its hospitality portfolio through construction of an additional 240 rooms in an extension wing at Crown Plaza, while the proposed conversion of 2 towers at 6 Shenton Way and Twin Peaks into serviced residences is expected to underpin the next uplift in recurring income.