UOL forecast to acquire new sites in FY12

Land acquisitions will be key requirements for UOL’s share price outperformance ahead, says OCBC.

Here’s more from OCBC Investment Research:

We believe that mass-market prices would be underpinned by an environment of continued low rates and abundant liquidity in FY12, and favor developers with ample land-bank outside the central region.

With only one domestic site in UOL’s land-bank currently, we view land acquisitions to be key requirements for share price outperformance ahead. Management has indicated that they are actively looking out for acquisition opportunities and, with an ample supply of residential sites in the government land sales programme, we see good odds that UOL would acquire new sites in the remainder of FY12.