Wheelock

Wheelock: OCBC says Buy on recent price weakness. The stock is OCBC's top pick amongst the mid sized developers. Wheelock provides a stable dividend yield of 3.3% underpinned by the group's prime Orchard retail assets , Wheelock Place and Scotts Square Retail. As at end Jun '14, Wheelock Place was 100% occupied with an overall monthly rental of above $13psfpm. Scotts Square Retail was 93% occupied, with avg rental of above $22 psfpm, and mgt says they are actively looking at rejuvenating the mall with stronger int'l luxury labels and F&B concepts. The group's domestic residential projects - Scotts Square (338 units), The Panorama (698 units) and Ardmore Three (84 units) are 79%, 38% and 4% sold, respectively. Wheelock's dev asset exposure is contained at 30% of total assets as at end 2Q14, and OCBC believes the group's solid balance sheet, with a healthy cash balance of $410m and low gearing of 7.3% will likely buttress it through the residential down cycle ahead. Catalyst in Wheelock's 22.6% stake in HPL , particularly if HPL decides to optimise and extract value from its multiple highly-prized but under-developed assets in the Orchard area.