Ascendas REIT kept at ‘buy’ by OCBC with $2.56 fair value

SINGAPORE (May 20): OCBC Investment Research is keeping its ‘buy’ rating on Ascendas REIT (A-REIT) with a slightly lower fair value of $2.56, 2 cents lower than the previous estimate.

To recap, A-REIT is divesting Ascendas Z-link in China for RMB760 million ($160 million), to a wholly-owned subsidiary of Cova Zpark Investment Holdings. The divestment is estimated to be completed by 1HFY17.

“This proposed divestment consideration comes in favourably as compared to the asset’s valuation of RMB690 million (S$144.7 million), as at 31 Mar 2016, and is also significantly above its acquisition price of RMB300 million,” says lead analyst Andy Wong says in a Friday report.

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