CAPITALAND MALL TRUST
C38U.SI
CapitaLand Mall Trust: Divestment of Rivervale Mall for S$190.5m
Summary:
- CapitaLand Mall Trust (CMT) announced that it has entered into an agreement to divest Rivervale Mall to a private equity fund managed by AEW Asia for S$190.5m.
- We are positive on this transaction, given that the sale price represents a substantial premium of 54.2% over its last independent valuation of S$116m (as at 30 Jun 2015). As a result, CMT will realise a gain of S$72m after taking into account the divestment fee and other related expenses.
- In addition, based on our estimates, Rivervale Mall was expected to contribute less than 2% of CMT’s FY15F gross revenue. The impact to DPU from the divestment would be even smaller if CMT uses the proceeds to repay some of its bank borrowings.
- Management expects this deal to complete on or about 15 Dec 2015.
- We maintain our BUY rating and S$2.10 fair value estimate on CMT.
Wong Teck Ching Andy
OCBC Securities
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http://www.ocbcresearch.com/
2015-10-16
OCBC Securities
SGX Stock
Analyst Report
2.10
Same
2.10
