Stock Name: CapitaMall
Company Name: CAPITAMALL TRUST
The total development cost is expected to be around $1.5 billion. CMT has a 30% stake in the joint venture which will be building a retail-and-office property at the site.
Company Name: CAPITAMALL TRUST
| Research House: OCBC | Price Call: HOLD | Target Price: 2.05 |
OCBC Investment Research has downgraded CapitaMall Trust (CMT) (CMLT.SI) to hold from buy following the REIT's purchase of a site in western Singapore.
The bank, however, slightly raised its target price for CMT to $2.05 from $2.02. CMT's main assets are shopping malls in Singapore.
CMT and sister firms CapitaMalls Asia (CMAL.SI) and CapitaLand (CATL.SI) have clinched the tender for the Jurong Gateway Site in western Singapore for $969 million.
The bank, however, slightly raised its target price for CMT to $2.05 from $2.02. CMT's main assets are shopping malls in Singapore.
CMT and sister firms CapitaMalls Asia (CMAL.SI) and CapitaLand (CATL.SI) have clinched the tender for the Jurong Gateway Site in western Singapore for $969 million.
The total development cost is expected to be around $1.5 billion. CMT has a 30% stake in the joint venture which will be building a retail-and-office property at the site.
The joint venture is targeting rentals of $16-18 per square foot per month (psf pm) for retail and $7-8 psf pm for the office segment, with an initial yield-on-cost of 6%, OCBC said.
The brokerage said the target requires rather high occupancy rates in the first year, adding that it remains wary of the office take-up as nearby buildings offer cheaper alternatives. The four malls located in the area will also compete for retail tenants.
It added that CMT's share price has risen 6.5% since its last report dated April 21.
At 11:17 a.m., CMT shares were down 0.5% at $1.97 on a volume of 1.3 million shares.
No comments:
Post a Comment