02 | August | 2009 | Lush Dream Home

Tan Hui Yee examines the conundrum of condo maintenance.

SUPPOSE you buy a luxury car one day, which comes with a one-year warranty and a paid chauffeur for that period.

There’s not much to complain about, as you zip around town in the cool comfort of the passenger seat.

After one year, when you finally get the keys, you realise something is wrong. The brakes are not working, the acceleration is not so smooth.

You head back to the car distributor, but he says: ‘Sorry, your warranty period is over.’

Condominium owners are faced with this conundrum when they move into their new home.

— Photo: CDL Continue reading →

CapitaLand shares slip 4.3% on news of bond issue

Posted on 2 Aug 2009 | Comments Off

CAPITALAND’S share price closed 4.3 per cent lower yesterday after the property group announced its $1.1 billion seven-year convertible bond (CB) issue due in 2016.

Some near-term share price weakness is expected due to the dilutive impact of the CB issue’s potential new shares, similar to the group’s four previous CB issues, notes DMG & Partners analyst Brandon Lee, who is maintaining his ‘buy’ recommendation on the counter. He also raised the revalued net asset value-backed target price to $4.43, from $4.37 previously, to ‘reflect the slight accretion on the assumption of full CB conversion’, he said in a research note.

CapitaLand lost no time in announcing the use of the proceeds from its latest CB issue to repay part of its existing indebtedness. It will repurchase $250 million aggregate principal amount of an earlier issue of outstanding CBs due 2018 for $238.9 million. The earlier CBs carry a 3.125 per cent per annum coupon rate Continue reading →