Brokers' take

OUE Hospitality Trust | Buy Target price: S$0.79 Sept 20 close: S$0.70 OCBC Investment Research, Sept 20

OUE H-Trust's unit price has declined 7.3 per cent since its Sept 10 close, after the announcement of a related party's acquisition of OUE Downtown office components through a dilutive rights issue.

We believe OUE H-Trust's sharp unit price decline was prompted by concerns of an equity fundraising in the near term to fund the acquisition of one of its right-of-first-refusal assets, Oakwood Premier, the serviced residence component of OUE Downtown.