Thursday, July 18, 2013

CapitaMalls Asia : Secures Beijing mall tender; to be acquired by CRCT (DB)

CapitaMalls Asia
Price at 12 Jul 2013 (SGD) 1.92
Price target - 12mth (SGD) 2.09
52-week range (SGD) 2.24 - 1.55
Secures Beijing mall tender; to be acquired by CRCT

CapitaMalls Asia has announced that it has secured the tender for Grand Canyon Mall in Beijing for RMB1.74bn (RMB26,000psm). As part of its right of first refusal for completed properties, CRCT has exercised a call option to acquire the property subject to government approvals and financing. CRCT will fund the acquisition via existing cash, new debt and c.RMB200-400m (S$50- 80m) in new equity financing. CRCT expects to complete the acquisition in 2Q2014. Management stated that the bid was at the reserve price of the Capital Airport Real Estate Group, who had shortlisted a selection of qualified candidates. Following the acquisition, CMA will have a stake in a total of 10 malls in Beijing.


Grand Canyon Mall is currently 93% occupied with an NLA of 43,000sqm, in Fengtai District, Beijing. The location is near major bus routes, and a subway station, 1 station away from Beijing South Railway Station. The asset has a a monthly footfall of over 1 million customers/month. Currently, Grand Canyon Mall has an NPI yield of 3.5% and management expects this to rise to 5% within the next year. Notably, current passing rents are c.50% below market rents, with 27% of leases expiring this year, and an additional 25% of leases expiring over in 2014-2015. Yields are also expected to be boosted by the raising of occupancy levels to 100%. Management believes that it will be able to raise the NPI yield to 7-8% over the next 2-3 years, broadly on par with its Capitamall Xizhimen asset located to the north. The company stated that it believes that execution risk will be manageable given the strong existing tenant base.

Deutsche Bank view
Although the impact to CMA’s SOTP is marginal, believe that the acquisition is positive in that it expands the company’s presence in Beijing while growing its AUM. The company noted at the briefing that land costs for greenfield projects have been rising, and that that its preferred strategy will be for CRCT to expand via third party acquisitions, as it would allow the company to continue to grow its footprint, vs. simple capital recycling. CMA is currently trading at a 17% discount to our SOTP of S$2.32, maintain Hold.



Source/Extract/Excerpts/来源/转贴/摘录: Deutsche Bank
Publish date: 16/07/13

No comments:

Post a Comment

Warren E. Buffett(沃伦•巴菲特)
Be fearful when others are greedy, and be greedy when others are fearful
别人贪婪时我恐惧, 别人恐惧时我贪婪
投资只需学好两门课: 一,是如何给企业估值,二,是如何看待股市波动
吉姆·罗杰斯(Jim Rogers)
“错过时机”胜于“搞错对象”:不会全军覆没!”
做自己熟悉的事,等到发现大好机会才投钱下去

乔治·索罗斯(George Soros)

“犯错误并没有什么好羞耻的,只有知错不改才是耻辱。”

如果操作过量,即使对市场判断正确,仍会一败涂地。

李驰(中国巴菲特)
高估期间, 卖对, 不卖也对, 买是错的。
低估期间, 买对, 不买也是对, 卖是错的。

Tan Teng Boo


There’s no such thing as defensive stocks.Every stock can be defensive depending on what price you pay for it and what value you get,
冷眼(冯时能)投资概念
“买股票就是买公司的股份,买股份就是与陌生人合股做生意”。
合股做生意,则公司股份的业绩高于一切,而股票的价值决定于盈利。
价值是本,价格是末,故公司比股市重要百倍。
曹仁超-香港股神/港股明灯
1.有智慧,不如趁势
2.止损不止盈
成功者所以成功,是因为不怕失败!失败者所以失败,是失败后不再尝试!
曾淵滄-散户明灯
每逢灾难就是机会,而是在灾难发生时贱价买股票,然后放在一边,耐性地等灾难结束
  • Selected Indexes 52 week range

  • Margin of Safety

    Investment Clock

    World's First Interactive Investment Clock