Stock Name: OUE Ltd
Company Name: OVERSEAS UNION ENTERPRISE LTD
Research House: Phillip Securities
Phillip Securities Research in an Apr 18 research report says: "OUE adds another iconic 320-room hotel into its hospitality portfolio in Singapore with an acquisition of 100% stake of L.C. Airport Hotel Pte Ltd, the owner of the Crowne Plaza Changi Airport Hotel, for $250 million.
"OUE also pay another $43 million for an adjacent plot of land which the group plans to build a further 200 rooms at an estimated cost of $37 million. The total investment of $330 mil for the 520-room hotel complex works out to $635k per room.
"We factor in the value of the new acquisition and increase its total debt following the issuance of $300 medium term note (MTN) on April 15, 2011. RNAV remains unchanged at $4.13. Fair value at $4.13, representing a potential upside of 30.7% from its latest closing price. MAINTAIN BUY."
Company Name: OVERSEAS UNION ENTERPRISE LTD
Research House: Phillip Securities
Phillip Securities Research in an Apr 18 research report says: "OUE adds another iconic 320-room hotel into its hospitality portfolio in Singapore with an acquisition of 100% stake of L.C. Airport Hotel Pte Ltd, the owner of the Crowne Plaza Changi Airport Hotel, for $250 million.
"OUE also pay another $43 million for an adjacent plot of land which the group plans to build a further 200 rooms at an estimated cost of $37 million. The total investment of $330 mil for the 520-room hotel complex works out to $635k per room.
"We factor in the value of the new acquisition and increase its total debt following the issuance of $300 medium term note (MTN) on April 15, 2011. RNAV remains unchanged at $4.13. Fair value at $4.13, representing a potential upside of 30.7% from its latest closing price. MAINTAIN BUY."
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