CMA

CMA: Deutsche notes CMA has stepped up activity in Japan in 2012, with the acquisition of 3 malls owned by 26%-owned CapitaMalls Japan Fund for $217m, and the purchase of Olinas malls for ¥22.8b ($367.3m). CMA’s Japan portfolio currently comprises 8 malls valued at ~$700m, located in Tokyo, Hokkaido and Osaka with 1.9m sf NLA. CMA earlier commented that its strategy was to build critical mass, and it is exploring options (including a public or private REIT or fund) to create a Japan platform which would enable them to tap domestic capital and pension funds. This could take place over the medium term. A stronger presence will also strengthen the group’s ability to bring Japanese retailers into Singapore or China. Nevertheless, with the stock trading at 1.3x P/B, at par to Deutsche’s RNAV of $2.18, the house believes valns look fair and maintains the stock at Hold with TP $1.96.