UOL could push for further expansion in Australia after first buy: analyst
It wants to build its recurring income as sentiment on Singapore property weakens.
UOL’s first Australia transaction worth $153.26m (AUD$155m) for a Sydney office building make mark the beginning for the firm’s expansion and diversification in the new market, DBS Equity Research said.
The research firm believes that the deal was according to UOL’s target to boost its recurring income amidst the weakening of sentiments on Singapore property.
Moreover, DBS Equity Research noted that the new office buy in Sydney has a 100% occupancy as well as a lease yet to expire until 2028.
“Although UOL is one of the proxies to Singapore property, we believe the company may be less impacted as being the earliest to land bank at a lower price would offer more room in pricing its properties” the research firm commented. “In addition, upward trends in office rents and hotel RevPAR bode well for UOL’s office and hotel investment properties.”