Tag Archives: Funds

CapitaLand Ltd’s Q2 profit falls 0.7% on-year to S$383.1m

CapitaLand Ltd’s second-quarter net profit fell 0.7 per cent to S$383.1 million from a year earlier due to lower portfolio gains.

Excluding portfolio gains, CapitaLand said its net profit would have risen 8.6 per cent to S$322.1 million.

Its revenue rose 37 per cent to S$1.18 billion in the second quarter.

CapitaLand, Southeast Asia’s biggest developer by market value, now wants to refocus its attention and pump more resources back to its two core markets – Singapore and China.

CapitaLand’s President and Group CEO Lim Ming Yan said: “We will continue to focus on our core markets of Singapore and China to develop homes, offices, shopping malls, serviced residences and mixed developments.”

Despite a slew of property cooling measures in both countries, CapitaLand said it remains upbeat on their growth prospects.

Singapore and China remain CapitaLand’s star performers, contributing to 63.5 per cent of the Group’s income in the first half of 2013.

In Singapore, CapitaLand sold 683 residential units amounting to about S$1.6 billion, up from 259 units worth S$467 million a year earlier.

While on mainland China, the developer moved 1,691 homes worth about S$640 million, higher than the 1,067 units worth S$400 million a year earlier.

CapitaLand is making a concerted effort to direct its resources to six cities, including Singapore.

It will also focus on five city clusters to seize new opportunities and reap economies of scale in China.

Not one to overlook its home market, CapitaLand will launch new residential projects in Singapore in the second half of 2013 in spite of the recent slew of cooling measures in the city-state.

About 75 per cent of CapitaLand’s group assets are in Singapore and China. Given the land scarcity in Singapore, analysts said it will be prudent for CapitaLand to devote more resources to China’s residential, retail and commercial markets.

Wilson Liew, investment analyst at Maybank Kim Eng, said: “They can be looking at more commercial investments in China. Demand for office in Beijing and Shanghai still remain relatively strong. That could come under the greater umbrella of the integrated developments which CapitaLand now appears to be targeting. That is a potential segment where there could be more growth.

He added: “Policy risks still remain on horizon, particularly in Singapore and even then, in terms of actual volumes, we are likely to see the month moderating going into the second half of this year.”

Mr Liew also commented on CapitaLand’s decision to hang on to its stake in Australand.

He said: “In terms of underlying profits, Australand is a fairly attractive investment but we don’t see synergies with the rest of CapitaLand. Given that the thinking behind CapitaLand is that China and Singapore continue to remain their key markets, we are fairly disappointed that they did not manage to sell Australand this time round.

So far, CapitaLand has invested about S$1.6 billion year to date and it hopes to achieve an eight to 12 per cent return on equity on a sustainable basis.

Source : CNA  – 25 Jul 2013

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CapitaMalls Asia strengthens presence in region with 2 new malls

Shopping mall developer CapitaMalls Asia has added two new malls in Qingdao, China and Japan worth a total of S$662.2 million to strengthen its presence in the region.

CapitaMalls announced on Monday that it signed an agreement to acquire a site to develop its first shopping mall in Qingdao, China.

It was acquired from Qingdao Vanke City Real Estate Co. Ltd and Qingdao Shuangshan Gongmao Co. Ltd.

The site is located at the junction of Heilongjiang Road and Hefei Road in Sifang district.

CapitaMalls Asia plans to develop a six-storey shopping mall with a total gross floor area excluding car park of about 89,700 square metres.

Including land cost, the total development cost of the shopping mall is expected to be about RMB 1,457.0 million (S$294.9 million) or about RMB 16,235 (S$3,286) per square metre of gross floor area.

When completed in 2015, the development expects to reach 550,000 residents within a 5km radius.

Mr Lim Beng Chee, CEO of CapitaMalls Asia, said he is confident about retail growth prospects in Qingdao.

“Including this mall, we now have seven malls in Northeast China. This acquisition is in line with our strategy to expand our footprint in China and strengthen our presence in the cities and regions we are already in,” he said.

CapitaMalls Asia has also acquired a mall in Japan.

It announced on Monday that it is acquiring Olinas Mall in Tokyo for JPY 22.8 billion (S$367.3 million) from Tiger Eye Realty Yugen Kaisha.

Mr Lim said: “The addition of the Olinas Mall will also strengthen our portfolio in Japan and widen our retailers’ network in the region. We have seen an increased interest by Japanese retailers to expand overseas.”

Olinas Mall was completed in 2006, and is located in Kinshicho area in the Sumida Ward of Tokyo.

It is part of a large integrated development with a total gross floor area of about 583,000 square feet, with a total car parking capacity of 853 spaces.

Olinas Mall is multi-tenanted, with 100 per cent occupancy at present.

The mall is also priced at S$964 (HK$5,848) per square foot of net lettable area, and has a current net property income yield in excess of 6 per cent.

Olinas Mall reaches more than 1.2 million people within a 5km radius.

With this acquisition, CapitaMalls Asia now has eight malls in Japan.

Source : Channel NewsAsia – 30 Jul 2012