Based on the MTI’s Retail Sales Index (excluding motor vehicle sales), retail sales in April 2010 grew by 1.5% MoM and 7.4% YoY. In particular, F&B as well as wearing apparel & footwear led the way in sales growth. Coupled with the Great Singapore Sale in full steam, we believe all these should bode well for CMT’s portfolio of retail malls.
The acquisition of Clarke Quay for $268m is expected to be completed by end June. Clarke Quay has been a major beneficiary of increased tourist arrivals. The URA will soon be launching a hotel site nearby at Clemenceau Ave for tender, which can yield about 195 rooms. We believe that the strong consumption patterns and the recovering tourism figures in Singapore augur well for CMT going forward. KE is maintaining our BUY recommendation with a DDM-derived TP of $2.23.
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