Wednesday, May 25, 2011

CapitaMalls Asia

CapitaMalls Asia: converting CapitaRetail China Development Fund (CRCDF) into an income fund. Investors can thus expect to receive distribution income from the fund’s portfolio of 24 malls in 24 different cities, at the end of this year. The fund is also being upsized by 50% to US$900m...

CRCDF will be renamed CapitaMalls China Income Fund (CMCIF) and will mature in 2017. The conversion reflects the majority of the portfolio’s malls becoming operational compared to previously being under development. CMA will commit another US$135m corresponding to its 45% stake in CMCIF. CRCT will have the right of first refusal over any malls that may be divested from CMCIF...

CMCIF will include Hongkou Plaza in Shanghai slated to open at the end of this year and CapitaMall Jinniu and Fucheng are expected to be completed in 2013, representing future upside potential for the fund.
CMA current trades at 1.08X P/B. Recommendations in the past week largely have a Buy on the stock with TP ranging from $2.15 - $2.51.

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