UOL's investments mispriced by the market: Nomura
The market is valuing Marina Square and Marina Bayfront at just SGD1,230psf.
Here's more from Nomura:
Despite UOL’s outperformance against the market year-to-date, we believe the market continues to misprice UOL’s investments, such as its direct stake in Marina Centre Holdings (MCH). It appears the market is valuing Marina Square and Marina Bayfront at just SGD1,230psf and the three Marina Bay hotels at just SGD509,600-571,100/key (or a 25-26% discount to even the end-2010 valuation), based on UOL’s current share price. In other words, valuing the MCH assets at their latest OMV alone would have added an additional SGD0.10/share to UOL’s share price, on our numbers.
Note that besides its direct stake in MCH, UOL owns an additional indirect stake via SingLand (SL SP, not rated; 78.4% held by UOL’s 42.9%-owned associate UIC [UIC SP, not rated]), which controls 53% of MCH. MCH owns the Marina Square mall, the Marina Bayfront office, the Pan Pacific Singapore hotel as well as 50% stakes in the Marina Mandarin and Mandarin Oriental hotels.
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