OUE

OUE: One Raffles Place, is reopened with ~70% of stores in operation. Management estimates OUE’s 41% stake in the One Raffles Place (inclusive of Towers 1 and 2) may be ready for injection into OUE C-REIT by 2015. Next, the focus will on conversion works at OUE Downtown, where ~264,794 sf of office space at Tower 1 is being converted into serviced apartments. The podium is in the process of being converted into a 159,307 sq ft retail mall called Downtown Gallery. Expected to be completed by 2016, the serviced apartments may be injected into (OUEHT), while the remaining office space and Downtown Gallery are expected be divested to C-REIT. After adjusting for deconsolidation effects of OUEHT, TP is cut to $2.80 from $2.83.