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
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http://www.ocbcresearch.com/
2015-12-10
OCBC Securities
SGX Stock
Analyst Report
2.09
Same
2.09
