OUE's failed acquisition just a small bump in growth path: Maybank

Other slated projects remain promising.

Here's more from Maybank Kim Eng:

Despite not being successful in its attempted acquisition of a major consumer/property conglomerate in Singapore recently, OUE still has grand plans waiting in the wings.

For one, OUE intends to REIT its hospitality assets in the coming months. If only Mandarin Orchard Singapore and Mandarin Gallery are REITed, OUE will probably be looking at the market to raise ~SGD1bn with a portfolio size of SGD1.8bn.

However, it is also in talks with authorities to convert one tower of Twin Peaks and DBS Tower One into serviced apartments, which can then be combined into the hospitality REIT. If these assets are also REITed, the equity fund raising could be almost doubled to SGD1.9bn.