OUE

OUE: Quite a bit of interest over the past 2 days, first by UOB Kay Hian yesterday, and this morning, you have Deutsche calling for a Buy with TP $2.43. Highlight that OUE is currently trading at a deep 50% discount and also at 0.5x P/B vs. long-term averages of 40% discount to RNAV. Believe that the key catalyst for OUE remains the redeployment of capital, such as its JV in South Korea and the acquisition of US Bank Tower, and also the potential divestment of its other hotel assets like the Crowne Plaza hotel. Management has stated that it targets at least one major acquisition per year, and the resolution of holding structures at One Raffles Place and Marina Mandarin could provide further redeployment opportunities.