CMT

CMT: Lend Lease’s Jen mall in Jurong Gateway opened on 15 Jun with much fanfare. Nevertheless, Maybank KE believes Jurong is big enough for all players. On the ground checks showed CMT’s malls (eg. IMM, JCube) continued to see healthy footfalls. As a catalyst, CMT’s upcoming Westgate Mall is already >60% pre-committed ahead of its completion at the end of this year. This will add another 420k sf of retail NLA to meet the demands of the region’s 1m population catchment. Visitors to the upcoming 700bed Ng Teng Fond Hospital and office workers at the office towers of Westgate and Jem will provide additional shopper traffic. The Jurong Lake District’s growth into a regional commercial hub will allow the four malls in the vicinity to co-exist symbiotically to serve the large population. Maybank KE expects CMT’s three malls in Jurong to contribute up to 19% of the portfolio’s NPI on a stabilized basis. Keeps Buy with TP $2.45.