OUE

OUE: OCBC initiates at Buy with TP $3.32, for three key reasons: - the bulk of OUE's portfolio is positioned in the core CBD office micro-market which the house sees as facing positive significant tailwinds in FY14, - OUE has fairly limited exposure to the uncertain residential sector (~10% of its RNAV), and - mgt has a sharp track record in creating value, seeking accretive deals and recylcing capital expediently. The potential listing of its commercial REIT may be an attractive catalyst for value realization and a possible special dividend ahead. OUE shares are up 0.8% at $2.52.