AscottREIT

AscottREIT: URA has granted provisional Permission for the redev of Somerset Grand Cairnhill Singapore, into an integrated hotel and residential development. Maximum allowable GFA of about 43.3k sqm comprising min 40% hotel and hotel related uses and 60% residential use. Existing lease of property expires in 2082 and co is looking into the possibility of an extension. Co is restricted to developing less than 10% of its asset base, which is a current $2.8b. All factors will be considered before deciding to proceed with the redev of the property.

StanChart has view that co will not be able to develop residential project due to restriction and will possibly sell the asset and reacquire or team up in a JV likely with sponsor Capitaland to redev. StanChart maintains In-line with TP$1.20 and awaits more details before adjustment.