The agreed property value is at a discount of 5% to the last independent valuation of RMB 1.77 billion conducted in December, which is a 30% drop from the value of RMB 2.4 billion accorded a year earlier.
DBS Group Research has kept its "buy" call and 33 cents target price on OUE REIT (SGX:TS0U
) after the proposed sale of its stake in a Shanghai property.
According to OUE REIT on Dec 20, it plans to divest its 91.2% stake in Lippo Plaza Shanghai for RMB 1.92 billion ($357 million) and at an agreed property value of RMB 1.68 billion.
