CCT: CapitaGreen, a JV project with Cpaitaland (50% stake) and Mitsubishi Estate Asia (10%), has a committed occupancy of 76.4% as at 21 Apr 15. CCT has the call option to acquire the remaining 60% stake from its JV partners and the exercise period is within 3 years after completion (2015-5017).
Demand for new office space remains relatively weak with new supply of office space in CBD area in the near term is South Beach and several stratified offices and then Marina One in 2016-17. City fringe supply in Paya Lebar will arrive only in 2019-20.
No major AEI plan although CCT has development capacity of $700m. Minor ongoing AEIs include upgrade of the lift lobby at Capital Tower.
No acquisition pipeline from sponsor other than CapitaGreen. Cap rate in SG remains low and entry yield for the recent transactions was at 3%. Current debt headroom is at $1.2b.
The house reiterate their REDUCE rating with TP: $1.58.
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