SINGAPORE (Nov 22): OCBC Investment Research is maintaining its “hold” call on Roxy Pacific with an unchanged fair estimate of 52 cents following news of its acquisition of a freehold property in Melbourne, Australia, for A$74.14 million ($76.1 million).
To recap, the group had bought a 45% stake in joint venture TE2 Roxy Australia via its indirect wholly-owned subsidiary, Roxy-Pacific Investments, to acquire the property at 312 St Kilda Road.
See: Roxy Pacific to acquire Melbourne commercial site for $76 mil through Australian JV
Roxy Pacific’s management views the asset as a prime investment opportunity with the potential to be a stable source of rental income for the group.
“We understand that there is expected to be no material impact on the group’s consolidated earnings and net tangible assets per share of the company for the current financial year ending 31 December 2017,” notes analyst Eli Lee in a Wednesday report.
As at 10.43am, shares in Roxy Pacific are trading at OCBC’s fair value estimate of 52 cents.
