Capitaland Investment

[BlueKelah]

good move, australian share market is at its highs, good to exit and take profits.

[MINX]

good move, australian share market is at its highs, good to exit and take profits.

Market don't see to think so, look what happen to it's share price. They made a loss on the first tranche that they sold, a small return on the 2nd tranche, hopefully they can redeem themselves by deploying the capital to good use...

[greengiraffe]

Capland placed the remaining 39+% stake in Australand recent at A$3.78. Australand closed at A$4.20 and now they boosted their full year guidance...

Australand has been part of Capland since late 1990s and now when overseas investors are making a beeline into Australia, they sold it...

???


Australand boosts full-year profit guidance


ELIZABETH REDMAN


Business Spectator

March 25, 2014 1:34PM




AUSTRALAND Property Group has lifted its full-year 2014 operating earnings guidance due to positive market conditions in the residential property sector.

Investors sent Australand shares 1.2 per cent higher to $4.22 at 11.17am (AEDT), against a benchmark index fall of 0.4 per cent.

In a statement, Australand said it expected operating earnings per security to be 17 per cent to 20 per cent higher in 2014 than 2013.

The property group also upgraded its distribution guidance to 25.5c per security, a 19 per cent lift on 2013, and higher than its February forecast of 22c per security.

Australand noted strong demand and price growth in its residential division, saying the 2014 residential earnings contribution was set to be higher than earlier forecast.

Sales activity had been particularly encouraging in NSW, Australand said.

[greengiraffe]

Exit a brightening mkt and keeping ploughing in uncertain markets but broadly inline with recent SWF's move into greater China markets

Australand guidance makes a statement
Robert Harley
474 words
27 Mar 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
The logic behind the Australand ­Property Group's increased guidance was clear to the analysts.

"Touche Stockland", reported CLSA analyst, John Kim. "Australand has made a statement that it is not going away without a fight – or at least at a higher price," he wrote.

Mr Kim wrote that Stockland would have to pay $4.39 for the 80 per cent of Australand it does not already own.

Last week, Stockland emerged with a 19.9 per cent stake in the diversified property group, at an average entry price of $3.78.

Most was picked up as Australand's dominant investor, the Singapore-listed developer CapitaLand sold out to 12 institutions at an average price of $3.75.

On Tuesday, Australand announced a significant upgrade to ­earnings and distribution guidance because of better than expected ­housing sales and the breaking of ­interest hedge swaps.

The one aspect of the increased ­guidance was the relatively subdued, 1¢ rise in the security price on the day.

"We read this as Australand's hedge breaks were already factored in by the market, and (so far) have had minimal impact on the financial year 2015 ­accretion," he wrote.

Morgan Stanley analyst, John Lee, wrote that the increased guidance could be the first of several defensive moves by Australand.

"With the market pricing in an increased chance of a Stockland ­outright bid, Australand is clearly ­looking to ensure nothing is left on the table," he wrote.

"Australand could use its share price strength as an opportunity for further capital management initiatives, including the potential equity funded buyback of its $250 million ASSETS hybrids."

Morgan Stanley actually has a price target of $3.95, well below the current price. It is also well below estimates of what Stockland could pay.

The analysts at Citi have estimated that Stockland could pay up to $4.58 a security and the takeover would still be 4 per cent accretive.

Morgan Stanley acknowledges the upside but it comes with a warning.

"We expect the stock will be well ­supported whilst Stockland maintains its 20 per cent stake, and the risk of M&A exists," Mr Lee wrote.

"[But] investors should be mindful of the downside risks to the share price should Stockland walk away and ­dispose of its stake."

Morningstar analyst, Tony Sherlock, noted that half the upgrade was "low quality" and driven by closing out ­existing interest rate derivatives.

"We've been critical of Australand's peers, who undertook similar debt restructuring over the past two years," he wrote.

" This action boosts short-term ­earnings by reducing borrowing costs (but) doesn't add any real value."

"In this instance, we see good logic behind Australand's debt restructure, as it's likely to be subject to a takeover from Stockland in the coming months."


Fairfax Media Management Pty Limited

Document AFNR000020140326ea3r0002l

[MINX]

Exit a brightening mkt and keeping ploughing in uncertain markets but broadly inline with recent SWF's move into greater China markets

Australand guidance makes a statement
Robert Harley
474 words
27 Mar 2014
The Australian Financial Review
AFNR
English
Copyright 2014. Fairfax Media Management Pty Limited.
The logic behind the Australand ­Property Group's increased guidance was clear to the analysts.

"Touche Stockland", reported CLSA analyst, John Kim. "Australand has made a statement that it is not going away without a fight – or at least at a higher price," he wrote.

Mr Kim wrote that Stockland would have to pay $4.39 for the 80 per cent of Australand it does not already own.

Last week, Stockland emerged with a 19.9 per cent stake in the diversified property group, at an average entry price of $3.78.

Most was picked up as Australand's dominant investor, the Singapore-listed developer CapitaLand sold out to 12 institutions at an average price of $3.75.

On Tuesday, Australand announced a significant upgrade to ­earnings and distribution guidance because of better than expected ­housing sales and the breaking of ­interest hedge swaps.

The one aspect of the increased ­guidance was the relatively subdued, 1¢ rise in the security price on the day.

"We read this as Australand's hedge breaks were already factored in by the market, and (so far) have had minimal impact on the financial year 2015 ­accretion," he wrote.

Morgan Stanley analyst, John Lee, wrote that the increased guidance could be the first of several defensive moves by Australand.

"With the market pricing in an increased chance of a Stockland ­outright bid, Australand is clearly ­looking to ensure nothing is left on the table," he wrote.

"Australand could use its share price strength as an opportunity for further capital management initiatives, including the potential equity funded buyback of its $250 million ASSETS hybrids."

Morgan Stanley actually has a price target of $3.95, well below the current price. It is also well below estimates of what Stockland could pay.

The analysts at Citi have estimated that Stockland could pay up to $4.58 a security and the takeover would still be 4 per cent accretive.

Morgan Stanley acknowledges the upside but it comes with a warning.

"We expect the stock will be well ­supported whilst Stockland maintains its 20 per cent stake, and the risk of M&A exists," Mr Lee wrote.

"[But] investors should be mindful of the downside risks to the share price should Stockland walk away and ­dispose of its stake."

Morningstar analyst, Tony Sherlock, noted that half the upgrade was "low quality" and driven by closing out ­existing interest rate derivatives.

"We've been critical of Australand's peers, who undertook similar debt restructuring over the past two years," he wrote.

" This action boosts short-term ­earnings by reducing borrowing costs (but) doesn't add any real value."

"In this instance, we see good logic behind Australand's debt restructure, as it's likely to be subject to a takeover from Stockland in the coming months."


Fairfax Media Management Pty Limited

Document AFNR000020140326ea3r0002l

I just pray Capland management knows what they are doing. With Singapore & China property market on downtrend, wouldn't it be better to hang onto Australand for some diversification?

[CityFarmer]

I just pray Capland management knows what they are doing. With Singapore & China property market on downtrend, wouldn't it be better to hang onto Australand for some diversification?

I didn't have property stocks in my portfolio, at least not yet. So might not spend enough time on Capland.

But I would like to highlight a point. We can take Singapore as one homogeneous market, but it is a mistake to take China as one as well.

I was told by a veteran China businessman. China is a country, but it is also 50 different countries in business sense.

[CityFarmer]

CapitaLand continue with its China property venture.

Back of envelop calculation on the cost
- gross floor area of 479,850 sq m, 60% share is 287,910 sq m.
- CapitaLand paid RMB 752 mil, thus the cost is 2610 yuan per sq m, that is a bargain, isn't it?

(not vested)

CapitaLand secures 60% stake in two adjacent residential Chengdu sites
28 Mar 2014 08:19
CapitaLand has secured a 60 per cent interest in two adjacent prime residential sites in the New Southern Area of Chengdu, Sichuan, China, via a proposed share subscription in two Chinese companies for RMB752 million (about S$155 million).

CapitaLand plans to build an estimated 4,600 apartment units on the 133,333 sq m sites to cater to first-time homebuyers and upgraders.

Construction is expected to begin in the second quarter of 2014 with the first phase targeted for launch by end 2014.

The two adjacent land parcels with a gross floor area of 479,850 sq m was secured by CapitaLand's subsidiary, Shanghai Zhong Da Industry Development Co.
...
Ref: Business Times Breaking News

[kayhian]

SINGAPORE: Southeast Asia's largest developer CapitaLand has launched a voluntary conditional cash offer to take shopping mall arm CapitaMalls Asia (CMA) private by buying CMA shares that it does not already own for S$2.22 each.

The offer -- made via Sound Investments Holdings -- is conditional on receiving acceptances such that CapitaLand holds more than 90 per cent of CMA.

CapitaLand, which owns around 65.3 per cent of CMA, will have to pay around S$3 billion to buy over the remaining 34.7 per cent.

According to CapitaLand Group CEO Lim Ming Yan, taking over and delisting CMA will "significantly simplify" CapitaLand Group's structure.

"CapitaLand will be in a better position to capitalise on the growing trend towards integrated developments in our core markets of Singapore and China," he said.

CapitaLand said its offer price of S$2.22 in cash for each CMA share represents a premium of 27.0 per cent over CMA's one-month volume-weighted average price. The offer price is also 20.7 per cent higher than CMA's net asset value per share as of December 31, 2013.

CMA shares, which were suspended earlier on Monday, were last traded at S$1.805 apiece.

CapitaLand spun off CMA in late 2009 in what was then one of Singapore's largest ever initial public offerings.

[piggo]

Sell @ 2.12, buyback at S$2.20?!

[ksir]

Will be more appropriate if we apply time value of money. Also, NAV now and then is different.