Total selling price is $2,800 psf.
According to OCBC, in terms of land-banking, UOL is taking a selective stance as it views mass market sites to be riskier due to a potential over-supply.
Here's more from OCBC:
This being so, UOL has focused on acquisitions in the mid-tier residential segment and also white sites for mixed developments.
We believe that UOL would likely shy away from the upcoming mass-market sites being offered through the government land sales (GLS) tenders, though some for the mixed-use sites could be particularly interesting to the group given its expertise in mixed developments.
Potential catalysts over the near term include new residential launches at the Bright Hill and St. Patrick Rd sites in 1H13, with Bright Hill likely to launch first around Mar-Apr 2013.
The Bright Hill site, acquired in Aug 2012 for S$292m, will likely be developed into a 405-unit condominium with a total GFA of 405k sq ft. We estimate break even and selling prices of S$1,150 and S$1,300 psf, respectively, translating to a gross profit margin in the vicinity of 13%.
The site at St. Patrick Rd was acquired through an en-bloc process for S$172m, with a total expected GFA of 138k sq ft, and we estimate break even and selling prices of S$1,250 and S$1,500 psf, respectively.
Though revenues from the hotel ownership segment held up well over 3Q12 – falling 1% YoY to S$91.1m due to the impact of refurbishment works at several assets – we note that 3Q12 REVPAR for its Singapore hotels was mostly flat YoY.
In our view, this datapoint, along with similar trends observed at other Singapore hotel operators, points to an increased likelihood for an inflection point in domestic REVPAR growth.
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