Brokers' take

GuocoLand Limited > Buy UOB KayHian, Sept 29 Sept 29 close: S$2.27 Target price: S$2.80

THE leasehold mixed-use site in Beach Road received a whopping S$1.62 billion, or S$1,706 per square foot per plot ratio (psf ppr), top bid from a 70-30 joint venture between GuocoLand and its Hong Kong-listed parent Guoco Group.

We estimate commercial breakeven at about S$2,900-3,000 psf and residential breakeven at around S$2,300 psf. This would result in a blended average breakeven of around S$2,750-2,800 psf based on our assumed 70-30 split for the commercial and residential components respectively.