CAPITALAND MALL TRUST
C38U.SI
CapitaLand Mall Trust - Near-term Beneficiary Of Century Square AEI
- According to media reports, Century Square, which is located in Tampines and managed by AsiaMalls Management Pte Ltd, is undergoing a refurbishment exercise which will cost ~S$60m. This will result in temporary closure of the mall, and the reopening is expected in 2H18. The mall has an occupancy rate of ~98%, as reported by The Business Times.
- We believe CapitaLand Mall Trust’s (CMT) Tampines Mall (TM) will be a beneficiary of this event in the near-term, given its close proximity to Century Square.
- According to AsiaMalls’ website, Century Square has 125 retail outlets and drew 11.7m in shopper traffic last year. Key retailers of Century Square include NTUC FairPrice Finest, Century Cineplex (operator is Shaw Theatres) and BHG. Hence, movie-goers would have to go to TM’s Golden Village cinema as the next nearest alternative.
- This would also have a positive spillover effect on other retail outlets in the mall, especially F&B. However, once Century Square reopens, there will be increased competition again, as new tenants include cinema operator Filmgarde, Hai Di Lao hotpot and lifestyle grocer Mahota Market. Notwithstanding this, we expect TM to remain resilient given its strategic location and large residential catchment in Tampines.
- Maintain BUY and S$2.20 fair value estimate on CMT.
Wong Teck Ching Andy CFA
OCBC Investment
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http://www.ocbcresearch.com/
2017-08-18
OCBC Investment
SGX Stock
Analyst Report
2.200
Same
2.200
