Starhill Global: ($0.875) Myer Centre Adelaide to drive FY16 NPI growth
Starhill recently completed its debt-funded $303m acquisition of Myer Centre Adelaide.
The 602,000 sf NLA property has both retail (84%) and office (16%) space with occupancy rates of 95% and 93%, respectively, and is the largest city mall along Adelaide’s prime CBD shopping belt.
In addition, the property has 114,000 sf of additional but not yet available retail space, which may provide for potential upside.
At 6.6% NPI yield on cost, Maybank-KE expects the property to generate $10.8m revenue this year (six months) and $20.6m in FY16, representing 13.1% of FY14's NPI.
Maybank-KE maintains its Buy call and lifts TP to $0.97 from $0.93, citing catalysts from favourable rent reviews for Ngee Ann City and Malaysian assets.
Starhill Global currently trades at an estimated 6.4% FY16 yield and 0.9x P/B.
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