CMA

CMA: to invest Rmb 1.45b (S$281m) for 66% stake in a prime shopping mall & office dev in Shanghai, via JV in the Abbey Road Group. The proposed invmt will be funded by a mix of debt and equity.
Total dev cost of the project is ~Rmb 3.9b (S$747m), which translates to Rmb 30.4k psm of gfa, including land cost. DTZ values the Property at Rmb 2.3b...

View move positively, as this is in line with CMA’s strategy of capital recycling, and would allow developer to leverage on its balance sheet strength. Following the divestment in its Clark Quay properties and CMMT listing, CMA is now net cash, and has plenty of debt headroom with total debt/equity at only 12.5%.
Stock trades at 1.4x P/B. Street a mix of Buys, Sells and Holds, with recent targets ranging $2.08-2.65.