[SINGAPORE] Shares of UOL Group climbed to their highest price in around two decades on Tuesday (Jan 27) morning, after JPMorgan raised its target price for the property developer on the back of strong tailwinds.
The stock jumped 8 per cent to end the day at S$11.18, with some 3.7 million shares changing hands. This marked its highest price since 2006, when it was renamed UOL Group from United Overseas Land.
The rally came as JPMorgan analyst Terence Khi on Monday lifted the target price for UOL to S$12.05, a 16.4 per cent increase from the counter’s latest closing price of S$10.35 that day, while maintaining its “overweight” rating. This represented an increase of 18.7 per cent from JPMorgan’s previous target price for UOL of S$10.15.
The upgrade came as the property developer, alongside consortium partners CapitaLand Development and CapitaLand Integrated Commercial Trust (CICT), won the tender for a mixed-use site in Hougang Central.
The consortium had placed the top bid for the site, of S$1.5 billion or S$1,179 per square foot per plot ratio (psf ppr), in a government land sales tender that closed on Dec 16.
UOL and CapitaLand Development will develop the residential component of the 4.7 hectare, 99-year leasehold site, while CICT will develop the commercial component.
New units in the project could be priced at S$2,500 to S$2,600 psf, based on a land rate of S$1,179 psf ppr, The Business Times reported earlier. Knight Frank research head Leonard Tay said that the average selling price might be even higher due to the project’s facilities, amenities and accessibility.
Part of the project will be situated above the current Hougang Mall MRT station and incorporated with the bus interchange.
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