Capitaland

Capitaland: 59.3%-owned subsidiary Australand Property Group has received an unsolicited, indicative, non-binding proposal from The GPT Group, to acquire Australand’s investment property portfolio and its commercial and industrial business. The proposal involves Australand retaining the residential business and remaining a listed entity. Various views as follows: - Barclays view the deal positive, as it could unlock value and signal a strategic change for CAPL. CAPL remains as top pick in the sector, currently trading at a 20% discount to RNAV, 1x P/B. - DB maintain Buy, TP 3.87, CAPL remains as top sector pick for its strong development pipeline and ability to realize NAV. - JPM believe the proposal does validate the group's book valuation and potential upside to it. Should the bid get priced at or above a 5% premium, there could be a minimum S$0.05/share uplift to current RNAV estimate of $5.09/share.