CapitaMall Trust

CapitaMall Trust: UOBKayHian opines that the private placement of 125m new units @ $2 to raise gross proceeds of $250m may be a prelude to the acquisition of Star Vista, the recently completed CapitaMalls Asia shopping mall in Buona Vista. The latest committed occupancy for Star Vista is above 90%, up from above 80% in Aug-12. Other potential uses of the funds would be to fund an AEI at Funan DigitaLife Mall, or other acquisitions from the sponsor such as Ion Orchard. Management guided that the placement would enable the group to optimise its capital structure, thereby increasing our debt headroom and putting it into a better position to embark on future opportunities to boost unitholders’ returns.” This differs from the $250m private placement on 01-Nov-11 where the proceeds were largely used for capital expenditure and AEIs.