CapitaMalls Asia

[brattzz]

don't think it's national service at all.. lolz!

especially when it's open to retail investors at such low allocations...

[Jon-san]

I was an earlier customer with CIMB then the rate was 0.9%

Same here. Was getting 1% previously, before they revised it down.

[freedom]

retail business is alwasy the most resilient one in the world.

in Singapore, there is no Coca-Cola, MacDonald, P&G. CapitaMall Asia, can it be considered as a retail play?

[piggo]

they don't have any products that makes then unique and the customer pool that follows... The closest I could think of in sg would be creative and aztech :p

Cma is more of a developer cum manager of retail malls right? The last I checked most of their malls are in china. Unlike singapore doubt malls there double up as recreational areas so it should be less resilient?

[SLC81]

CMA is offering bond investor at 1% and 2.15% return and they are getting at least 5% return on the recent acquisition of Penang shopping mall.
So they are making 2-3% difference here LOL

[freedom]

I think CapitaMall Asia should not be a bad investment.


their malls in Malaysia and China should generate great profit for them.

[Musicwhiz]

Jan 22, 2011
Retail investors chase CapitaMalls bonds
$100m worth of bonds attract $181.7m in funds, or 1.82 times subscribed
By Gabriel Chen, Finance Correspondent

INVESTORS' appetite for alternative ways to make their money work harder is not letting up, judging by the response to CapitaMalls Asia's (CMA) bond issue.

The shopping mall developer, which is using the proceeds to invest in new developments and for other general corporate purposes, said yesterday that investors with funds worth $181.7 million chased the bonds worth $100 million reserved for retail investors.

This means the public offer for the one-year bonds that pay 1 per cent a year and the three-year bonds that pay 2.15 per cent was about 1.82 times subscribed.

The placement tranche - also of $100 million - was fully subscribed, CMA had announced last week.

Saving deposits are now giving consumers near-zero interest rates, though corporate bonds - instruments offering better yields - are somewhat riskier.

Said CMA chief executive Lim Beng Chee in a statement: 'We regret that we were not able to fulfil all the demand. The support we've received will reinforce our resolve to offer retail investors more opportunities to invest in our future series of bonds.'

Still, CMA's retail offering was less popular than Singapore Airlines' five-year bond issue last year, which was 2.3 times subscribed by 'mom and pop' investors.

Said Mr Clifford Lee, head of fixed income at DBS Bank, which managed both the SIA and CMA offerings: 'For retail Asian bond offerings, about two times covered is considered quite well-received.

'So CMA's is right about there, and I would say the reception by investors has been pretty good,' he added.

Mr Lee said there will be more corporate bonds for retail investors in the pipeline this year, and that they will span various industries and have mostly short- to medium-term tenures.

Some experts have urged caution on the amount that investors are putting into bonds, given the growing possibility that inflation may rear its ugly head and push up borrowing costs. Bonds tend to rise in value when interest rates drop, and drop in value when interest rates rise.

With rock-bottom interest rate levels, which will seemingly go nowhere but up later, bonds could suffer as a result.

'The important thing for investors is to have a balanced portfolio,' Mr Lee reiterated. 'We are not telling investors to forgo equities, but to introduce some fixed- income play into their holdings.'

In CMA's prospectus, investors are cautioned that the developer is subject to interest-rate fluctuations that could affect a portion of its consolidated debt, which is on a 'floating rate' basis. 'There is no certainty that the interest rates will not increase to the detriment of CMA,' it noted. 'Consequently, the interest cost to CMA for the floating interest debt will be subject to the risk of interest-rate fluctuations.'

gabrielc@sph.com.sg
--------------------------------------------------------------------------------
GOOD RESPONSE

'For retail Asian bond offerings, about two times covered is considered quite well-received. So CapitaMalls Asia's is right about there, and I would say the reception... has been pretty good.'

Mr Clifford Lee, head of fixed income at DBS Bank, which managed both the SIA and CMA offerings

[Ben]

This sleeping giant is finally waking up, I hope. The Chinese spending power is improving. Retail business in China should be quite bright.

Vested.

[Musicwhiz]

Business Times - 18 Feb 2011

CMA Q4 profit down 15.2%

Revenue also drops 16.5%, mostly due to sale of Clarke Quay and 3 malls

By EMILYN YAP

CAPITAMALLS Asia (CMA) yesterday posted a 15.2 per cent year-on-year drop in fourth-quarter net earnings, as it recognised less profit from The Orchard Residences and sold four malls last year.

To speed up growth in China and hit its target of having 100 malls there in the next three to five years, the group will be standardising some of the ways it designs, develops and leases projects.

CMA shared details of its results and plans at a briefing yesterday. For the quarter ended Dec 31, 2010, revenue was $55.2 million - down 16.5 per cent from a year ago - largely due to the sale of Clarke Quay to CapitaMall Trust and three malls in Malaysia to CapitaMalls Malaysia Trust.

Fair value gains on properties under development or for investment rose 32.6 per cent to $25 million. Offsetting this was a $7.75 million foreign exchange loss.

The group's net share of results from associates and jointly-controlled entities fell 23.6 per cent to $135.3 million, partly due to lower profit recognition from unit sales at The Orchard Residences. Consequently, Q4 net profit shrank 15.2 per cent to $144 million.

For the full year - CMA's first since its listing in November 2009 - revenue went up by 7.2 per cent to $245.4 million.

Its net share of results from associates and jointly- controlled entities was $344.9 million, down 29.5 per cent. On the whole, net profit increased 8.7 per cent to $421.9 million.

CMA has proposed a dividend of two cents per share for the year - double last year's.

Growth remains on CMA's agenda. This year, it has six malls due for completion - five in China and one in India. It is also working towards launching the residential component of a mixed-use site at Bedok Town Centre with CapitaLand by year-end.

CMA aims to invest $2 billion in new projects this year and China will be an important market.

'The credit tightening measures in China have presented us with opportunities to buy shopping malls at more realistic prices,' said group CEO Lim Beng Chee.

CMA plans to adopt a standardised approach to designing, developing, leasing and managing its new malls in China. It believes that it will be able to reduce costs and construction time, and replicate growth in various parts of China quickly. Retailers might also benefit as they can assess the malls more easily, Mr Lim said.

For malls in China's city centres, however, CMA will continue to customise designs just as it does for malls in Singapore, he stressed. The group could bring the standardised approach to India when the market opens up more.

Singapore is CMA's biggest market by asset size, making up 56 per cent of the $6.98 billion asset base.

China is second with a 33 per cent share. However, the group foresees its presence in the mainland growing to account for 40 per cent of the asset base in future. Another 40 per cent could come from Singapore and 20 per cent from other markets.

CMA ended trading on the stock market at $1.92 yesterday, four cents down.

[Nick]

CMA released a list of all the malls which they have an interest in.

http://info.sgx.com/webcoranncatth.nsf/V...9003E775E/$file/Annc_PropertyDetailsAsAt31Dec2010_20110218.pdf?openelement

At the moment, they only have malls in Singapore, China, India, Japan and Malaysia. Wonder will they expand to Indonesia ?

(Not Vested)