CapitaLand Mall Trust - OCBC Investment 2015-12-10: Proposed redevelopment of Funan DigitaLife Mall

CapitaLand Mall Trust - OCBC Investment 2015-12-10: Proposed redevelopment of Funan DigitaLife Mall CAPITALAND MALL TRUST C38U.SI 

CapitaLand Mall Trust: Proposed redevelopment of Funan DigitaLife Mall 


  • CapitaLand Mall Trust (CMT) announced this morning that it will be redeveloping Funan DigitaLife Mall into an integrated development. 
  • Funan DigitaLife Mall is located in North Bridge Road in the downtown core of Singapore, and currently has an untapped GFA of ~388,000 sqft. Hence, a redevelopment project would allow CMT to realise the full potential of the site and unlock its asset value. 
  • As a result of this, the mall is expected to be closed in 3Q16, and redevelopment works will take approximately three years. 
  • Funan DigitaLife Mall contributed 5.1% to CMT’s FY14 gross revenue and 4.8% to its NPI. This move by CMT does not come as a surprise to us, as management had previously guided the market that it was exploring options to unlock the value of the mall, and this may come in the form of a redevelopment or divestment. 
  • Pending further details to be shared in due course, we maintain our BUY rating and S$2.09 fair value estimate on CMT. 


Wong Teck Ching Andy OCBC Securities | http://www.ocbcresearch.com/ 2015-12-10
OCBC Securities SGX Stock Analyst Report BUY Maintain BUY 2.09 Same 2.09


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