UOL

UOL: Could see some positive interest after it announced it has bagged the freehold 147,909 sqft Lion City Hotel and adjoining former Hollywood Theatre site for sgd313m. Price works out to $799/psf of potential gfa inclusive of $77.8m estimated development charge…

Grp noted site is near the existing Paya Lebar MRT station for the East-West and Circle lines. Highlight that based on the current allowable development options, the property may be redeveloped as a commercial-cum-residential development and Co. will cont to assess the current allowable development options to determine the final development scheme for the property….

We note that in light of the recent government property cooling measures, UOL has been tipped by various houses as one of the most resilient players in the sector, citing that the developer offers the best risk-reward proposition in its sector, given it currently has no SG land bank left and is in a ‘good position to reflate its RNAV by acquiring land in a softer environment.’ DBSV and OCBC has a Buy Call on grp with TP at $5.30 and $5.42 respecitvely.