Capitaland Investment

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Broker's Report - http://www.theedgemarkets.com/sg/article...-unchanged
CapitaLand kept at ‘buy’ by Deutsche, target price of $4.20 unchanged
By Jeffrey Tan / theedgemarkets.com | November 20, 2015 : 11:57 AM MYT
SINGAPORE (Nov 20): Deutsche Bank is confident that CapitaLand ( Valuation: 2.60, Fundamental: 1.00) is able to achieve its return on equity (ROE) target of 8%-12%.

It says ROE growth will be driven by the sustained sales momentum in China, portfolio rationalisation, asset recycling and a focus on growing its fund management platform.

“CapitaLand remains one of our top sector picks,” Deutsche analysts Joy Wang and Chien-Fie Man write in a note on Nov 18.

Deutsche maintains its “buy” rating for the stock with an unchanged target price of $4.20.

At 11.45 am today, CapitaLand slipped 3 cents or 0.9% to $3.12, with some 4.3 million shares traded.

[Boon]

CapitaLand: We're sticking with China
Leslie Shaffer CNBC Tuesday, Jan 05, 2016

China's property sector has long inspired fears that it's a bubble waiting to pop, but Singapore-based developer CapitaLand is sticking with its bets there.

Singapore-listed CapitaLand, which has developments across Asia, has kept its focus on just 10 cities in China: Shanghai and Beijing make up almost half of the nearly 30-40 billion Singapore dollars ($21-28 billion) of total assets that the developer has in the country, CapitaLand's chief financial officer Arthur Lang told CNBC Tuesday.
"Anyone who has been in these two cities recently will wonder whether there is actually any slowdown at all. And if you throw in the other two top tier-one cities, Guangzhou and Shenzhen, we're about two-thirds to 70 per cent situated in these four cities," he noted, adding that only around 4 per cent of the company's China assets are in tier-three cities.

"Short term, we are cautious like everyone else is because of all the volatility we're seeing in China," Lang said, noting nearly half of the company's assets are on the mainland. "But in the long term, we're still very confident and very optimistic."

Lang noted that CapitaLand had guided that it would probably have around 14 billion yuan (S$3.06 billion) in residential sales on the mainland in 2015 after clocking 11 billion yuan worth in the first three quarters.

Despite long-standing fears over overbuilding, China's property market has shown signs of stabilizing, even in the more stagnant residential sector, with the government backtracking on some cooling measures it put in place to calm the previously overheated market. The People's Bank of China (PBOC) has also cut interest rates repeatedly since November 2014.

Indeed, China's top-30 cities' full-year property sales hit a historical high, with volume up 20 per cent on year, according to data cited by Nomura in a note Tuesday.
However, the country still suffers from high vacancy rates in some regions, but these so-called ghost towns are generally located well outside China's largest cities.
Concerns over China increased after Monday's stock market rout, which saw the CSI300 index tumble more than 7 per cent, triggering a circuit breaker that halted trade for the day.

One of the reasons cited for the drop was the Caixin Purchasing Managers' Index (PMI), which came in weaker than expected, falling to 48.2 in December; levels below 50 indicate contraction.

"Everybody talks about the PMI, the overall PMI dropping. It has dropped and we expect it to continue to remain a bit weak over the next few quarters. But if you look at the non-manufacturing PMI, which is a function of services, it's actually gone up. I think it's a 15 or 16 month high. And that's positive for us," Lang said.
The official non-manufacturing PMI, released over the holiday weekend, rose to 54.4 in December from 53.6 in November.

"It's positive for our business because we are very much focused on the residential, the shopping mall, the consumption piece of China," Lang said.

"Our retail business, our shopping mall business is still doing well. We're focused always on the mass-market business. We call it the necessity shopping business. We're not focused on the high-end or the super luxury, which you know is suffering now, not only in China," he said.

China's retail sales are expected to have grown around 10.7 per cent in 2015, according to a Reuters report citing the Ministry of Commerce, down from 12 per cent in 2014.

CapitaLand, which has a market capitalisation of around 14 billion Singapore dollars, saw its stock outperform the Singapore market in 2015, with shares finishing essentially flat, compared with the benchmark Straits Times Index falling around 14 per cent for the year.
[Image: CNBC_resized.jpg]
http://business.asiaone.com/property/new...king-china
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[cyclone]

Singapore Property Market Is 'Bottoming Out,' Says Biggest Developer's CEO

Klaus Wille and Paul Panckhurst
August 3, 2017, 11:52 AM GMT+8 August 3, 2017, 1:03 PM GMT+8

Singapore’s biggest developer, CapitaLand Ltd., detects signs that the city’s residential property market is “bottoming out” after a run of price declines, Chief Executive Officer Lim Ming Yan said.

Many investors are seeing Singapore as relatively more attractive than Hong Kong, London or Australian cities, Lim, who’s also president of the firm, said in a Bloomberg TV interview with Haslinda Amin on Thursday. Extra liquidity was a factor in higher transaction volumes and slower price declines in recent months, he said.

“For a rebound to take place on a more sustainable basis, there has to be overall improvements in the fundamentals,” Lim said.

More details in https://www.bloomberg.com/news/articles/...toming-out

[cyclone]

CapitaLand Invests S$300 Million to Develop Integrated Development & Acquire Serviced Residence in Jakarta

CapitaLand‘s first integrated development in Indonesia, The Stature Jakarta is on track for completion by end 2020 at a total development cost of approximately S$220 million. It further expands its presence in Indonesia by investing S$74.3 million in a 192-unit serviced residence, Ascott Sudirman Jakarta, through CapitaLand’s wholly owned serviced residence business unit, The Ascott Limited (Ascott). Together, this represents an investment of approximately S$300 million in Southeast Asia’s largest economy.

More details in http://infopub.sgx.com/FileOpen/News%20r...eID=469701

[cyclone]

CapitaLand continues portfolio reconstitution strategy by divesting a group of companies that own 20 retail assets in China 

Through its wholly owned shopping mall business CapitaLand Mall Asia, CapitaLand has entered into agreements with unrelated parties to divest its share of interest in a group of companies that hold 20 retail assets with an agreed value of RMB8,365.0 million (about S$1,705.9 million). Each mall has an average gross floor area (GFA), excluding car park, of about 40,000 square metres (sq m). They are spread across 19 cities, of which 14 are noncore cities where CapitaLand has a single mall in each. 

Targeted for completion in 2Q this year, this transaction is expected to generate for CapitaLand net proceeds of about S$660.0 million and a net gain of about S$75.0 million. The loss of recurring income arising from this transaction will be limited, as these 20 malls accounted for approximately 4% and 7% of CapitaLand’s respective total and China shopping mall portfolio valuation as at 30 June 2017. This round of mall portfolio reconstitution follows CapitaLand’s divestment of CapitaMall Kunshan in the Chinese city of Kunshan last month, and the formation of a joint venture between CapitaLand and CapitaLand Retail China Trust last November to acquire Rock Square, a leading 84,000-sqm shopping mall in the first-tier city of Guangzhou. 

More details in :
1. http://infopub.sgx.com/FileOpen/Announce...eID=484296
2. http://infopub.sgx.com/FileOpen/NewsRele...eID=484297
3. http://infopub.sgx.com/FileOpen/Presenta...eID=484298

[cyclone]

CapitaLand wins bid for two prime residential sites totalling 150,000 square metres in Guangzhou, South China

CapitaLand today announced that it has been awarded two prime residential sites in Guangzhou, South China, at a price of RMB2.05 billion (about S$409.3 million). The sites, measuring about 150,000 square metres in total, is set to build up to 1,300 homes by 2021, catering to first-time home buyers and upgraders. This award comes hot on the heels of CapitaLand’s recent acquisition of a mixed-use site in Chongqing in June 2018, which will yield more than 2,100 residential units.

The two newly awarded residential sites are located in the heart of Zengcheng District, the engine of Guangzhou’s industrial growth and the site of the city’s future second international airport. Zengcheng is also home to well-known companies such as FOXCONN and Honda, as well as the upcoming Guangzhou Education City. The government plans to grow the district’s population from the current 1.15 million to 2.1 million by 2020, making Zengcheng the fastestgrowing district in Guangzhou. Part of a mature residential zone, the sites are surrounded by well-established amenities including malls, schools, a hospital, a library and other residential developments.

More details in http://infopub.sgx.com/FileOpen/CLNewsre...eID=521429

[cyclone]

CapitaLand-CDL joint venture wins prime site in Sengkang Central

CapitaLand Limited and joint venture partner City Developments Limited (CDL) have successfully clinched the attractive mixed-use residential and commercial site in Singapore’s vibrant Sengkang Central at a tender price of S$777.78 million. The bid was submitted on a Two-envelope Concept and Price Revenue tender system which works out to S$923.60 per square foot of gross floor area.

The joint bid by CapitaLand and CDL was submitted through Siena Residential Development Pte. Ltd. and Siena Trustee Pte. Ltd. (as Trustee-Manager of Siena Commercial Trust), each holding a 50.0% interest in Siena Residential Development Pte. Ltd., Siena Trustee Pte. Ltd. and Siena Commercial Trust.

Leveraging synergies from CapitaLand’s and CDL’s proven expertise in integrated developments, the joint venture will transform the 3.7-hectare site – the largest commercial and residential site awarded since 2015 – into an integrated community hub with 700 residential apartments, meeting the needs of residents in Buangkok with amenities such as a hawker centre, community club, childcare centre, retail shops, as well as public rail and bus transport facilities sited in a one-stop location. The new non-remittable and revised ABSD rate imposed on housing developers from 6 July 2018 will not apply for this site acquisition. The integrated development is targeted for completion in the first half of 2022.

This integrated site in the heart of Sengkang Central has direct access to Buangkok MRT Station and the future bus interchange and is a mere 20-minute drive from the Central Business District. At only nine stops to Dhoby Ghaut MRT Station via North-East Line, the travelling time is less than 25 minutes. The site is also easily accessible via major expressways such as KPE, SLE and CTE and well connected to major hubs such as the future Punggol Digital District and Seletar Aerospace Park. The proposed development will offer first-time private home buyers and upgraders an attractive opportunity to own a home with excellent transportation connectivity and close proximity to a myriad of amenities.

More details in http://infopub.sgx.com/FileOpen/180816_C...eID=522025

[cyclone]

CapitaLand acquires portfolio of 16 multifamily properties in the United States for US$835 million

CapitaLand, through its wholly owned international business unit CapitaLand International, has acquired a portfolio of 16 freehold multifamily properties for US$835 million (S$1.14 billion) in the United States (U.S.). It marks the Group’s foray into the country’s multifamily asset class to ride on the growing demand for long-term rental housing. The portfolio comprises 3,787 apartment units, all located in well-connected suburban communities of the metropolitan areas of Seattle, Portland, Greater Los Angeles and Denver. The price per unit of the portfolio is US$220,000, which is consistent with market transactions.

These Class B properties in the suburban regions are operating at over 90% average occupancy, with average length of stay of about two years. They are well connected via highways or commuter rail systems, and enjoy easy access to neighbourhood amenities like supermarkets, malls, schools and nature reserves. They see strong demand from a diverse mix of middle-income and skilled professionals working in the surrounding employment hubs. These suburban regions have experienced growing employment rates and are home to government agencies, companies in the technology, energy, healthcare and life sciences industries, as well as multinational corporations such as Boeing, Microsoft, Starbucks, Amazon and Nike. These professionally managed properties offer a myriad of facilities such as swimming pools, fitness centres, dog parks, playgrounds and clubhouses, all in an expansive garden-style compound.

Multifamily properties refer to multiple separate housing apartments within one compound.

A Class B multifamily property is typically older with room for enhancement and caters to middle-income tenants. In comparison, a Class A multifamily property is luxurious, relatively newer, and commands comparatively much higher rents. A Class C multifamily property is typically more than 30 years old, often requiring extensive improvement works.

More details in :
1. http://infopub.sgx.com/FileOpen/Announce...eID=525376
2. http://infopub.sgx.com/FileOpen/News%20R...eID=525377
3. http://infopub.sgx.com/FileOpen/Slides%2...eID=525378

[cyclone]

CapitaLand to divest 89.8% interest in holding companies of Main Airport Center in Frankfurt to CapitaLand Commercial Trust
* Group’s year-to-date divestments have exceeded annual S$3 billion target

CapitaLand announced today that it has, through its subsidiary and associated company, entered into an agreement with CapitaLand Commercial Trust (CCT) to divest 89.8% out of its 94.9% interest in the holding companies of Main Airport Center (MAC), a freehold commercial property in Frankfurt, Germany. Post transaction, CapitaLand will continue to hold a 5.1% stake, while CCT owns the remainder 94.9%.

The proposed transaction is based on an agreed property value of €265.0 million (about S$407.8 million) on a 100% basis, negotiated on a willing-buyer and willing-seller basis. The transaction, which is conditional upon CCT’s independent unitholders’ approval, is expected to be completed in 3Q 2019.

More details in :
1. https://links.sgx.com/FileOpen/CL_Divest...eID=570608
2. https://links.sgx.com/FileOpen/CL_NewsRe...eID=570609

[cyclone]

CapitaLand to divest 30 business park properties in the USA and Singapore to Ascendas Reit for S$1.66 billion
* Active asset management a key strategy to achieve sustainable double-digit return on equity

CapitaLand announced today that it has entered into agreements to divest 30 business park properties in the United States of America (USA) and Singapore to Ascendas Real Estate Investment Trust (Ascendas Reit). The agreed value of the properties, arrived at on a willing-buyer and willing-seller basis, amounts to S$1,661.7 million1 in total. The proposed divestments, which are conditional upon the approval of Ascendas Reit’s independent unitholders and the relevant authorities, are expected to be completed in 4Q 2019. Upon completion, CapitaLand is expected to realise an estimated gain of about S$95.4 million.

The properties in the USA comprise a portfolio of 28 freehold office properties with an agreed property value of US$935.0 million (S$1,281.7 million). They are located across six business parks in three tech cities, namely San Diego, Raleigh and Portland. Tenants in these properties include established Fortune 500 companies such as Nike and Oracle, as well as other high-profile and quality tenants from the technology, internet, aerospace and biotechnology sectors.

The properties in Singapore are Nucleos and FM Global Centre with an agreed property value of S$289.0 million and S$91.0 million respectively. Nucleos is primarily a business park and research & development facility with multiple tenants situated within Biopolis, the biomedical hub at one-north. FM Global Centre is a single-tenanted built-to-suit business park development located in Singapore Science Park 2, the country’s technology corridor for R&D and technology development along Pasir Panjang Road.

More details in :
1. https://links.sgx.com/FileOpen/20191101_...eID=583973
2. https://links.sgx.com/FileOpen/20191101_...eID=583974