Perennial's latest divestment could signal more to come, says DBS

By Michelle Zhu / The Edge Singapore | April 25, 2019 2:22 PM SGT
SINGAPORE (April 24): DBS Vickers Securities is maintaining its “buy” rating on Perennial Real Estate Holdings (PREH) with an unchanged target price of 83 cents as it continues to expect near-term earnings to be driven by further divestment or fair value gains.
AXA Tower and Beijing Tongzhou are some of the potential assets to be divested, in the research house’s view.
This comes post the announcement of PREH’s divestment of Chinatown Point for $225 million, which the DBS sees as another instance of the group’s ability to buy and sell at good values, coupled with the ability to value-add to Singapore’s “ailing” real estate sector.
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