MGCCT

MGCCT: Stan Chart says Beijing office rents could still go up, buoying Gateway Plaza. Prime Beijing office rents are expected to rise 5-10% p.a. in 2014-16, driven by tight vacancy rates and low supply in the next 3 years, and expect signing rents at Gateway Plaza to rise 5% p.a., making 28% of MGCCT’s FY17 NPI. Meanwhile, Festival Walk’s tenant sales remains resilient despite weak HK retail sales YTD. StanChart raises TP of MGCCT by 4% to $1.04 and reiterate O/PF.