CapitaLand

CapitaLand: has emerged as the highest bidder with a bid of $366m ($908 psf of land) for a 403k sf site at Coronation Road, 17% above the next bidder. The site is slated for the devt of 140 units of semi-detached houses and bungalows, to be ready for launch around 2Q14. There was strong interest in the site, with 12 bidders in total, reflective of its attractive location in District 10, and proximity to top tier schools, the Botanic Gardens, and upcoming Tan Kah Kee MRT station. This is the first landed site up for tender since Dec ’11 tender for Chestnut Avenue ($510 psf gfa). Deutsche estimates a break even of $3.7m per unit based on a 1900 sf avg plot size. Assuming margin of 14%, this would translate to an ASP of $4.1m per unit. Recent launches for freehold landed properties in District 10 that have transacted btwn $5.8-5.9m per unit ($2,400 – 2,600 psf land). The house estimates the project will contribute approx 1 ct to RNAV of $4.93. Remains positive on CAPL’s potential for NAV crystalisation and maturing devt pipeline. Tips CAPL as top sector pick with Buy rating and TP $4.43.