CapitaLand Mall Trust - OCBC Research 2015-10-16: Divestment of Rivervale Mall for S$190.5m

CapitaLand Mall Trust - OCBC Research 2015-10-16: Divestment of Rivervale Mall for S$190.5m 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 | http://www.ocbcresearch.com/ 2015-10-16
OCBC Securities SGX Stock Analyst Report BUY Maintain BUY 2.10 Same 2.10


Advertisement



MOST TALKED ABOUT STOCKS / REITS OF THE WEEK



loading.......



ANALYSTS SAY


loading.......