UOL rises 6.7% to highest price in over two decades after JPMorgan target price upgrade

[SINGAPORE] Shares of UOL Group climbed to its highest price in 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 as much as 6.7 per cent in early trade to its highest price since 2000 of S$11.04 as at 9.04 am, with 247,900 shares changing hands. By 9.22 am, it eased to S$10.94, but was still up by 5.7 per cent or S$0.59, with some 519,100 shares transacted.

JPMorgan on Monday lifted its 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. This marks an increase of 18.7 per cent from JPMorgan’s previous target price for UOL of S$10.15.

The upgrade comes as the property developer, alongside two 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.