Cambridge Reit

Cambridge Reit: DBSV believes the coming few yrs could be transformational for Cambridge. With a no. of its master leases rolling off, Cambridge could relook at potential re-dev or asset enhancement plans within its portfolio. The house estimates Cambridge can reap a further 2.6m sf gfa, or potential 35% expansion in rentable space, which could raise rental income by up to 44%. Adds, the potential collective sale of Lam Soon Industrial Building, if completed, is likely to unlock substantial gains for Cambridge, which currently owns a 69.2% stake . This could translate into an attributable profit of $82.3m (7 cts/ unit). The house maintains Buy , lifts TP to $0.93 from $0.75.