PCRT

PCRT: (The Edge) Creates more stability with partner Kuok. Pua note that coming of Kuok and exit of old partner Shanghai summit comes as a sign of relief, and the 2 new partners have created an alignment of interests, with $400m of fresh capital to invest, 70% of which will go to China. Despite recent underperformance in grp’s Shenyang Red Star mall, Pua expects to rebuild the occupancy soon, while by the end of the yr, the office tower will be completed, adding that leasing of the shopping mall has still been within expectations. Note that PCRT’s current properties are support by a earn-out by Shanghai summit till 2014, and Pua expects PCRT’s properties to be delivering strong income on their own steam by then, tiopping grp’s property yields for the malls to be in the region of 7-8% when fully operational. Conclude that with Kuok on board, Pua can focus on operating the shopping malls, with strong capital backing. Add that Kuok isn’t ready to lose his apetite for China property soon. Add that with the new partnership, they can create a very formidable real estate platform.