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