Capitaland 01 (May 08 - May 10)

[millionairemind]

CapitaLand going ahead with 2nd Malaysian Reit
Latest offering will comprise 3 malls worth RM2b: chief investment officer
By PAULINE NG
IN KUALA LUMPUR

CAPITALAND will list its second Malaysian real estate investment trust (Reit) this year, barring unfavourable market conditions, the company's chief investment officer Kee Teck Koon said yesterday.

Mr Kee: CapitaLand will time the launch of the Reit 'so it can capture the imagination of investors'
The Reit will initially comprise three shopping malls worth RM2 billion (S$849 million), he said. CapitaLand will gauge market sentiment to ensure the launch is timed 'so it can capture the imagination of investors'.

At a news briefing after the topping-out ceremony for Kuala Lumpur's Tower D, which is owned jointly by CapitaLand and Malaysia's Quill Group, Mr Kee said that the listing plan for the second Reit has not changed. 'The intention is very clear,' he said.

Penang's Gurney Plaza and two malls in the Klang Valley - Mines Shopping Fair and Sungei Wang Plaza - will form the Reit's initial core assets. Mr Kee would not say who CapitaLand's local partner in the Reit would be.

The company's reservations about market sentiment are warranted. The last three listings on Bursa Malaysia have debuted below their offer price. In the latest, shares of Perwaja Steel yesterday opened 10 sen short of the RM2.90 offer price before closing at RM2.48.

Although Malaysian Reits are seen as defensive, interest among foreign investors has been dampened by relatively high withholding tax.

Still, some investors continue to be attracted to local real estate because its comparative pricing ought to allow for greater capital appreciation down the road.

For example, the Malaysia Commercial Development Fund (MCDF) - a US$270 million closed-end private equity investment fund launched jointly by CapitaLand and Maybank in March 2007 with a gross development value of US$1 billion - is fully invested, CapitaLand Commercial chief executive Wen Khai Meng said yesterday.

CapitaLand 'may consider subsequent funds' focused on residential, commercial and retail segments, he said.

MCDF provides a pipeline of projects to be injected into Quill Capita Trust - a commercial Reit jointly listed by Quill and CapitaLand in January 2007 with an initial fund size of RM276 million, which has grown to over RM800 million.

Tower D in the KL Sentral area will allow them to further leverage on strong demand for commercial property and is likely to be injected into the Reit.

To be completed by January, the Grade A building, which has a net lettable area of 355,000 square feet, has a confirmed tenancy rate of 65 per cent and is expected to be fully tenanted by March.

The 29-storey office block with a six-storey retail podium has attracted several multinational and big local companies as tenants, said Quill director Michael Ong.

Rental rates are around RM6 to RM7 per square foot and a number of tenants have signed three-plus-three-year leases, he said.

CapitaLand, through MCDF, owns 40 per cent of Tower D developer Quill Realty.

[ishak]

CapitaLand to realise S$313 m gain from asset injection
Business Times, 22 Aug 2008

PROPERTY giant CapitaLand has inked deals to inject four Raffles City-branded integrated developments in China - in Shanghai, Beijing, Chengdu and Hangzhou, into its Raffles City China Fund.

The US$1 billion (S$1.4 billion) real estate private equity fund will be purchasing CapitaLand's effective 55.9 per cent stake in Raffles City Shanghai, and 100 per cent of the other three Raffles City projects under development.

CapitaLand has a 50 per cent stake in the fund.

The property group is expected to receive a total consideration of about US$841 million (S$1.149 billion) which takes into account the agreed value of Raffles City Shanghai at 4.5 billion yuan (S$889 million) and the agreed land values of the other three Raffles City projects.

Net of its 50 per cent stake in the fund, CapitaLand will obtain an eventual net cash flow of about US$420 milllion (S$574 million).

In addition, CapitaLand will realise a total portfolio gain of S$313 million, which includes a net gain of S$183 million from the dilution of its interest in the four Raffles City assets as well as the fair value gain of S$130 million for Raffles City Shanghai.

Besides originating and retaining a sponsor stake in the fund, CapitaLand is also managing the fund and its properties.

[ishak]

CapitaLand - Heading for S$5.53
6 August 2008

- CapitaLand broke out of an upwards channel in June and has failed to recover since. It broke past its Jan 08 low at S$5.10 yesterday but rebounded strongly to close at S$5.28.

- The declining volume over the last 2 trading sessions suggests the downwards momentum is waning. Coupled with the MACD displaying a positive divergence and the stochastic indicator starting to show an oversold signal, we anticipate a rebound to occur in the near-term.

- The reversal candlestick formation yesterday was on the back of high volume, further raising the probability of a rebound in the near-term.

- Any rise from hereon could test the 1st resistance at S$5.53 and subsequently the 2nd resistance at S$6.05. Support is set at S$5.10

[bertyeo]

this one is lao sai everyday

[ishak]

CapitaLand shares slide to 2-year low
Funds selling down regional property stocks as outlook gets more downbeat
BT, 26 August 2008

The stock of the region's largest listed property group is taking a sharp knock as funds bail out of regional property stocks amid an increasing bearish outlook for the sector.

CapitaLand's shares fell 13 cents or 2.9 per cent to $4.32 yesterday - its lowest level in two years. But what baffled many market watchers was the heavy selling volumes. Some 21 million stocks changed hands.

'It is not just the selling that is worrying, but the heavy volumes on the way down,' observed a seasoned dealer. 'This is heavy institutional selling, and a very bearish signal.'

Meanwhile, CapitaCommercial Trust sank 10 cents or 5.4 per cent to $1.75 on some 7.3 million units amid concerns that the office rental market in Singapore was poised for a 30 per cent drop over the next three years as supply significantly outstrips demand.

The current selldowns follow downgrades by some global houses in recent weeks.

About 10 days ago, Morgan Stanley cut CapitaLand's 12-month price target to $4.16, from $5.94, citing weak earnings for the next two years.

Morgan Stanley noted that CapitaLand's wider diversification strategy and Asian regional footprint had failed to provide some share price support on the downside. CapitaLand has significant interests in Singapore, China, Vietnam and other regional countries. The investment house's analysts Melissa Bon and Brian Wee said there were no positive catalysts, and cautioned of a possible absence of new launches for up to 18 months if the economic slowdown dragged on.

'We are inclined to be less optimistic than CapitaLand's management who expect the Singapore residential market to remain flat this year,' the report said.

Meanwhile, UBS said in a report on Friday that it expects office rentals and capital values to drop as much as 34 per cent in the next four years.

But given that it is Asia's largest listed property company, CapitaLand has a relatively large pool of global portfolio investors. And this makes it more vulnerable to massive selldowns by funds which are scrambling to cash-up in the face of a global liquidity crunch.

The stock's liquidity - which attracted institutional investors and helped fuel its bull run last year - has also turned out to be a double edged sword, contributing to its savage beating now.

The selldowns came despite the fact that CapitaLand will realise a total portfolio gain of $313 million by injecting four of its Raffles City assets in China into its 50 per cent owned Raffles City China Fund. This comprises a $183 million net gain from the dilution of CapitaLand's interest in the four Raffles City assets, and a $130 million fair value gain for Raffles City Shanghai.

[iam802]

This one break support twice. Now trying to stay above $4.32.

[LenaHuat]

Savagely beaten up indeed. Overstretched ambitions, I suppose. I sold this ticker at $6/90 not too long ago and now it seems headed for $3/80. Back to this guiding principle : Protect your gains and cut.

[millionairemind]

Hi Lena,

Capitaland signaled 2 reversals the past 2 days. It tanked to around 4.23 and then reversed +ve twice... short sellers might be giving up and might be ready to move up...

I will give it one more day to see if it can start moving back up and start a new trend..

Just something I observed in this stock cos' almost all the property counters moved in tandem.

Then then hor, 3.80 oso nice lah...

Cheers,
mm

[LenaHuat]

Hi MM
Ya, held firm at closing price of $4/40 for 2 days liao.
Watch out for CDL too I'm more in luv with CDL.

[qxing78]

This one seems too oversold. May consolidate awhile.
Well, no matter what, it is still the 一哥 in the property sector.