OUE Downtown's latest revamps to finish soon

Downtown Gallery, Oakwood Premier Singapore will start operations by 2H17.

According to OCBC investment research, OUE’s upgrading works at OUE Downtown is almost complete, with Downtown Gallery and Oakwood Premier OUE Singapore ready to begin operations in 2H17.

The group also continues to gain sales at OUE Twin Peaks through active marketing efforts and 411 units (out of 462 total units) have been sold as at 31 Mar 2017, up from 384 units as at end 2016.

“Management sounded upbeat about its recent acquisition of IHC and expressed confidence in adding value to the healthcare real estate portfolio,” OCBC said.

OCBC predicts that OUE is going to have a positive outlook for 2017. OUE’s 1Q17 PATMI has grown 85.3% YoY to S$15.37m due to reversal of impairment losses on OUE Twin Peaks and lower finance expenses. Topline grew 60.3% to S$196.3m mainly due to more unit sales at OUE Twin Peaks.

“Accounting for one-time items, we judge this quarter’s numbers to be broadly in line with expectation and 1Q17 PATMI now forms 19.7% of our full year forecast,” OCBC said.