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Daily Archives: 8 Oct 2009

M&C to grow Mid-east, North Africa presence

Posted on 8 Oct 2009 | Comments Off

CITY Developments‘ hotel unit Millennium & Copthorne (M&C) plans to grow its presence in the Middle East and North Africa from 30 properties now to 100 by 2015, says the group’s head in that region.

Reaching out: M&C already manages nine completed projects in the Middle East and North Africa, including the Millennium Airport Hotel Dubai

Ali H Lakhraim, president and CEO of M&C hotels & resorts for the Middle East and North Africa, said achieving the target will make the company one of the region’s largest hotel management players.

M&C is leaving no stone unturned in its quest for expansion. It recently signed contracts to manage three upcoming hotels in Iraq.

‘We are very happy with the growth we have seen over the past six to seven years,’ Mr Lakhraim said. M&C set up its Middle East and North Africa unit in 2002. ‘The hotels we manage will give us a boost to grow even faster as people become more familiar with our name,’ he said.

M&C now manages nine completed projects in the Middle East and North Africa in places such as Dubai and Abu Dhabi in the United Arab Emirates and Doha in Qatar. Occupancy rates for these hotels range from 60-80 per cent on average and room rates can go as high as US$320 a night in Abu Dhabi. Continue reading →

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Posted in Developers, Overseas Property

Tagged City Developments, Millennium & Copthorne

Spinoff by CapitaLand: Will Reit units lose out?

Posted on 8 Oct 2009 | Comments Off

CAPITALAND on Monday announced plans to spin off its $20.3 billion retail portfolio into a separate listed entity. While the move by itself just realigns ownership, some key benefits will be derived for CapitaLand.

However, concerns have since been raised about the impact of the move on CapitaLand’s two listed retail property trusts – CapitaMall Trust (CMT) and CapitaRetail China Trust (CRCT). Both trusts might lose out if investor interest switches to the new CapitaMalls Asia (CMA).

CapitaLand, on the other hand, will benefit as it boosts its balance sheet.

CMA’s stakes in the malls under its umbrella have a total net asset value of $5.3 billion. Assuming that CapitaLand chooses to float 20-40 per cent of CMA, conservatively about $1.1 billion to $2.1 billion would be raised. This will increase CapitaLand’s cash position, lower its gearing and allow it to invest and grow its other core business.

‘We view the transaction positively and agree with CapitaLand that the capital raising will enable the group to foster growth in all its businesses – enabling its retail mall division’s growth to be accelerated while simultaneously maintaining relative balanced growth with its other business units,’ said Nomura analyst Tony Darwell.

But is the deal to the disadvantage of CMT’s and CRCT’s minority shareholders and retail investors? Continue reading →