Brokers' take

Singapore Press Holdings | Hold (Upgrade) June 22 close: S$3.20 Target price: S$3.34 OCBC Investment Research, June 22

SPH announced that, together with its JV partner Kajima, its consortium has been awarded for S$1.132 billion the HDB tender for a 99Y leasehold site at Upper Serangoon Rd at the Bidadari Estate. The mixed site has a land area of about 25.4k sqm (with a max gross floor area of 958.5k sq ft) and the consortium plans to develop over 600 homes with a 310k sq ft commercial component.

While the consortium's bid was deemed to be bullish by the market, we note that its bid was only 1.1 per cent higher than the second highest bidder and believe the project will likely be accretive, particularly given improved sentiments in the domestic residential sector. Given the uncertain economic outlook and the continuing disruption of the media industry, we expect conditions to remain challenging for the group's media business.