Hongkong Land: CLSA believes market talk that HKLand will be the next to undergo a rights issue is unfounded. House estimates HKLand’s gearing will be kept below 12% after taking into account the recently acquired Pudong project.
Additionally, strong leasing activity in the mid-range of the market in the past two months has resulted in a sharp improvement in Central vacancies to 2.3%, the lowest since the GFC. Channel checks also suggest rents in Central will be raised by HK$5-10psf.
CLSA reiterates Outperform with TP of US$8.70.
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