Capitaland 01 (May 08 - May 10)

[iam802]

there is a possibilty it will move higher ...today it close higher than open price.

but Friday is not too far off as well.

[ishak]

CapitaLand sells 30% stake in Menara Citibank in KL for M$176m
BT, 29 Aug 2008

SINGAPORE - CapitaLand is divesting its 30 per cent stake in Menara Citibank, a 50-storey office tower in Kuala Lumpur's Jalan Ampang, for a consideration of M$176 million (US$52 million). Upon completing the divestment, CapitaLand will recognise a gain of about $22.1 million (US$15.6 million).

CapitaLand owns the asset through its stake in Inverfin Sdn Bhd, whose principal asset is Menara Citibank. The Singapore-based property giant is making divestment along with all the other shareholders of Inverfin, who are selling their respective shareholdings in Inverfin to IOI Corporation Berhad.

[LenaHuat]

Started UpTrending liao.
The market seems to like its decisive actions to raise cash by becoming more asset-light.

[winston]

Not vested.

Lehman cuts CapitaLand target to S$5.30, keeps overweight

SINGAPORE, Sept 3 (Reuters) - Lehman Brothers has cut its 12-month price target for Southeast Asia's biggest property firm CapitaLand to S$5.30 from S$7, citing concerns over the company's listed real estate investment trusts (REITs).

Lehman, which kept its "overweight" investment rating on the stock, said CapitaLand may find it harder to buy assets to grow its REITs. The stock last traded at S$4.45.

[ishak]

CapitaLand sees S$163 mln gain after Capital Tower Beijing sale
BT, 03 Sep 2008

SINGAPORE - CapitaLand on Wednesday said it has entered into a share purchase deed for the sale of its indirect wholly-owned subsidiary Hua Lei Holdings Pte Ltd which indirectly owns all of the office property Capital Tower Beijing for US$352 million.

The sale purchase comprises the consolidated net asset value of CapitaLand's indirect wholly-owned subsidiaries which own the property, taking into account the assignment of shareholder's loan of about US$166 million (S$235 million) and valuing Capital Tower Beijing at US$488 million (S$691 million).

CapitaLand will obtain a net cash flow of about S$498 million and is expected to recognise a gain of S$163 million.

[LenaHuat]

GS's report 2day :

Analysis
This transaction comes on the back of the recently announced injection of Raffles City Shanghai, Raffles City Beijing, Raffles City Chengdu and Raffles City Hangzhou into Raffles City China Fund, providing further evidence that CapitaLand’s capital recycling model continues to work even in difficult market conditions.
While its Reits may find it difficult to raise equity to finance acquisitions, we see that CapitaLand can sell assets to third parties and its private funds. We note that CapitaLand intends to use the S$498 mn of cash generated from the sale of CTB to strengthen its balance sheet and redeploy capital to capture other business opportunities in China. However, we do not believe investors will be enamored with an earnings boost from divestment gains as they remain concerned over possible earnings shortfalls stemming from slow residential sales.
Implications
From a mth ago, CapitaLand’s share px is -22% vs City Dev (CTDM.SI; CDL), -11%. We do not think CapitaLand (Neutral) should trade at a much wider disc to RNAV of 34% vs CDL (Sell, Conv List) at 13% disc. Our 12-m TP of S$5.20 for CapitaLand is set at 20% disc to RNAV (Risk: performance of SG resi mkt).
Mgmt has to date been cautious on redeploying capital from divestment gains to seize new business opportunities, which we read to imply that credit and business conditions will remain tough.

I shall put this back on my radar at 20% disc on TP of S$5.20 = S$4.16. 2day's closing price is S$4.17

[ishak]

Sept 5

ERODING Margins and Risk of Provisions. Reiterate 'sell', cutting RNAV and target price: We are cutting our RNAV by 10 per cent to S$4.90 to reflect:

• 10-20 per cent decline in prices for its residential projects in China;

• lower selling prices and higher construction costs in Singapore and potential provisions; and

• lower P/E multiple of 10 times for its assets under management (AUM) business. Given the fast-deteriorating environment and its low ROE, we have based our target price of S$3.90 on a 20 per cent discount to RNAV.

Cut selling prices for residential projects in China: Tony and Oscar, our HK/China property analysts, believe that the 'easy money' era has ended. The next 12 months will be a differentiating period for the China property market. In terms of regions, we believe that Bohai, Yangtze River Delta, and Chongqing would outperform, while areas like Guangdong, Beijing, Wuhan and Fujian would see further corrections. We expect a 20 per cent decline in Guangzhou in the next 12 months, 10-15 per cent in Chengdu, flat for central Shanghai.

Potential provisions of almost S$150 million for Singapore residential sites: CapitaLand bought several large sites costing almost S$1 billion (attributable) in 2007 near the peak of the cycle. We are particularly concerned about Farrer Court and Char Yong Garden, which we believe could potentially require provisions with break-even prices of S$1,350 per square foot (psf) and S$2,500 psf vs selling prices of S$1,200 psf and S$2,200 psf, based on our estimates.

Recent sale of investment properties in China: We reflect a total gain of S$346 million (12 cents per share) from both the injection of the four Raffles City projects and the sale of Capital Tower Beijing. SELL

[LenaHuat]

This ticker is 'stripping' :

Singapore, 8 September 2008 – CapitaLand’s wholly-owned unit, The
Ascott Group (Ascott), has entered into a conditional sale and purchase
agreement to sell Somerset Orchard, an 88-unit serviced residence for a cash
consideration of S$100 million or about S$1,530 psf to OG Private Limited
(OG). The carrying value of the property is S$57 million. CapitaLand is
expected to recognise a gross gain of about S$43 million from divesting the
property.
After the divestment, Ascott will continue to manage the serviced residence
for 15 years, with an option to renew the contract for another 10
years. Somerset Orchard is located at 160 Orchard Road.

[ishak]

INCREASE IN ISSUED AND PAID-UP SHARE CAPITAL OF CAPITALAND RETAIL LIMITED
09 Sep 2008

CapitaLand Limited (“CapitaLand”) wishes to announce that its wholly-owned subsidiary, CapitaLand Retail Limited (“CRTL”) has increased its issued and paid-up share capital from S$50,000,000 to S$550,000,000 (the “Share Issue”) by allotting and issuing an additional 500,000,000 ordinary shares to CapitaLand for a cash consideration of S$500,000,000.

Following the Share Issue, CRTL’s issued and paid-up share capital is S$550,000,000 comprising 550,000,000 ordinary shares.

CRTL will use the proceeds from the Share Issue to repay part of the existing shareholder loans from CapitaLand and its wholly-owned subsidiary, CapitaLand Treasury Limited, thus replacing these retired loans by share capital.

The Share Issue is not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand Group for the financial year ending 31 December 2008.

None of the Directors or the controlling shareholder of CapitaLand has any interest, direct or indirect, in the above transaction.

[ishak]

COMPLETION OF INJECTION OF (I) RAFFLES CITY SHANGHAI, (II) RAFFLES CITY BEIJING AND (III) RAFFLES CITY CHENGDU INTO RAFFLES CITY CHINA FUND LIMITED
09 Sep 2008

Further to its announcement made on 22 August 2008, CapitaLand Limited (“CapitaLand”) wishes to announce that it has today completed the sales of its entire interests in the three integrated developments in China, namely Raffles City Shanghai, Raffles City Beijing and Raffles City Chengdu, to Raffles City China Fund Limited (the “Completion”).

Following the Completion, Hua Qing Holdings Pte Ltd, Floral Land Pte. Ltd. and Calderdale Pte. Ltd. have ceased to be subsidiaries of CapitaLand and are now indirect associated companies of CapitaLand.