CapitaMalls Asia

[Nick]

CapitaMall Trust to acquire Iluma for S$295 million

Planned integration with neighbouring Bugis Junction will create
unique seamless shopping destination in popular Bugis precinct

http://info.sgx.com/webcoranncatth.nsf/V...40060CACB/$file/CMT-news_release_Iluma_28Feb2011.pdf?openelement

CMA is the REIT Manager of CMT so it should reap higher recurring Management fees going forward. Strangely, the share price took a beating and currently stands at $1.72 (18.8% discount to its IPO price).

(Not Vested)

[Nick]

Macquarie Hong Kong Non-Deal Roadshow Presentation (7-8 March)

http://info.sgx.com/webcoranncatth.nsf/V...B00801EEB/$file/Slides_HKNonDealRoadshow_20110307.pdf?openelement

[freedom]

I found that there is a lot of similarity between CapitaMall Asia and GLP. Both are GLCs. Both have matured portfolio for stable income(CapitaMall Asia on Singapore malls and GLP on Japan Logistic properties) and growth portfolio (heavily on China). But there are quite some differences between them as well.

1. CapitaMall Asia is in a net cash position, and GLP is in a net debt position. CapitaMall Asia is much stronger than GLP for growth.

2. CapitaMall Asia's matured portfolio is already in REIT structure, GLP is still holding the Japan properties and hope to REIT them later.

3. Singapore Malls are hard to replicate because government is controlling the building of new malls. GLP is in a much tougher position in Japan.

4. CapitaMall Asia also invests in Malaysia and India other than China for growth (diversification). GLP only has China for its growth.

5. For growth portfolio, CapitaMall Asia also structures most of them as an investment in its own managed investment funds or REITs (China: CapitaRetail China Development Fund (45%), CapitaRetail China Development Fund II (45%), CapitaRetail China Incubator Fund (30%), CapitaRetail China Trust(27.35%), Malaysia: CMMT(41.74%), CapitaRetail Malaysia Fund(to be created)). CapitaMall Asia always can divest its matured growth properties to its own fund/reits(probably at a premium)to have cash for future growth.

6. Also, Retail property is more resilient than logistic property investment business.


Clearly, CapitaMall Asia is in a much better position than GLP.

[momoeagle]

Hi Freedom,

they are indeed similar, yet they are also different in terms of commercial vs logistics.
I do think logistics is more resilient than retail, because I believe logistics is a necessity to drive retail.

[freedom]

I beg to differ.

for example in Singapore, retail reits like CapitaMall or FraserCenterPoint is much more resilient than Industrial/Logistics reits like Ascendas/MapleTreeLog etc

[Nick]

CapitaMall Trust raises S$250 million 3-year unsecured convertible bonds due 2014

Issue is part of manager’s proactive capital management strategy

http://info.sgx.com/webcoranncatth.nsf/V...F005A152B/$file/CMT_CB_release_11_March_2011.pdf?openelement

CMA is the REIT Manager of its associate CMT.

[lonewolf]

Proposed secondary listing in Hong Kong to complement China expansion strategy

Press Release

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There is no news in the press release on whether there will be new shares issue offered as part of the listing. Hopefully there will not be further share dilution.

(Vested)

[freedom]

just proposed only, maybe not decided yet?

[Musicwhiz]

Somehow the dual listing press releases always package it to sound so nice. But what I do know is - there is always a lot of money to be raised and whether it is through rights or placement, it seems existing minority shareholders have to bear the brunt of it.

(Not vested)

[freedom]

for CapitaMall Asia, it will be very different from those s-shares.

CapitaMall Asia is adequately valued in SGX due to its bluechip status, there will not be much premium for a second listing in HKEx.

The second listing is mainly for ease to raise RMB-priced money, be it debt/placement/rights to grow in China.