CapitaLand Limited - OCBC Investment 2016-09-26: Deepens exposure in Vietnam with acquisition

CapitaLand Limited - OCBC Investment 2016-09-26: Deepens exposure in Vietnam with acquisition CAPITALAND LIMITED C31.SI

CapitaLand Limited - Deepens exposure in Vietnam with acquisition

  • CapitaLand announced that it has acquired for US$51.9m a prime site in Ho Chi Minh City, which can potentially be developed into two towers – a 17-storey residential tower and a 22- storey serviced residence tower. 
  • The serviced residence component will be managed by the group’s serviced residence arm, The Ascott Limited, under its Somerset brand. 
  • Management indicates that they remain confident about Vietnam’s economic outlook and that residential sales in the country were strong in 1H2016 with about 460 units sold (worth about S$80m), which translates to a 20% YoY growth in terms of sales values and volume. 
  • We like that this project will deepen the group’s exposure to the growing Vietnamese market and note that this is CapitaLand’s third acquisition in the country since June 2015. 
  • Maintain BUY with an unchanged fair value estimate of S$3.68.




Eli Lee OCBC Investment | http://www.ocbcresearch.com/ 2016-09-26
OCBC Investment SGX Stock Analyst Report BUY Maintain BUY 3.68 Same 3.680



Advertisement




MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......


ANALYSTS SAY


loading.......