Value Recap – CapitaLand: A Proxy For Property Investment In Asia!

This article was first published on Jun 9, 2014

 

CapitaLand Limited (SGX: C31) is a Singapore based real estate company resulting from a merger between DBS Land and Pidemco Land, a subsidiary of ST Property Investments on Nov 2000.

An investor in CapitaLand would not only own a property powerhouse in Singapore but would in fact be an owner of a wide array of property investments from residential to retail operations throughout the region.

 

Following the sale of Australand Holdings (One of Australia’s leading diversified property groups) in March 2014:  and considering just equity investments, CapitaLand had a total of 7:

 

CapitaMalls Asia Ltd (SGX: JS8): One of the largest listed shopping mall developers, owners and managers in Asia with assets across the five countries of Singapore, China, Malaysia, Japan and India. Their integrated shopping mall business model included retail real estate investment, development, mall operations, asset management and fund management capabilities.

 

CapitaMall Trust (SGX: C38U): First Real Estate Investment Trust “REIT” listed on Singapore Exchange Securities Trading Limited in 2002. As at Mar 2013, CapitaMall Trust was Singapore’s largest REIT by market capitalisation and asset size that owns and invests in quality income-producing assets predominantly used for retail purposes primarily in Singapore.

 

CapitaCommercial Trust (SGX: C61U): Singapore’s listed premier commercial REIT, investing in high quality income-producing commercial properties in Singapore.

 

Ascott Residence Trust (SGX: A68U): Investing primarily in real estate and real estate-related assets which are income-producing and which are used or predominantly used, as serviced residences, rental housing properties and other hospitality assets across 12 countries in Asia Pacific and Europe.

 

CapitaRetail China Trust (SGX: AU8U): Investing on a long-term basis in a diversified portfolio of income-producing real estate used primarily for retail purposes and located in China.

 

Quill Capita Trust (QUIL:MK): REIT listed on the main board of Bursa Malaysia Securities Berhad to acquire and invest in commercial properties primarily in Malaysia

 

CapitaMalls Malaysia Trust (CMMT:MK):  Known as Malaysia’s “pure-play” shopping mall REIT, their objective is to invest in a portfolio of income-producing real estate primarily used for retail purposes and located primarily in Malaysia

 

S/N	Listed Entities (Jan 2014)	Equity Holding by CapitaLand
1	CapitaMalls Asia	65.44%
2	CapitaMall Trust	27.58%
3	CapitaCommercial Trust	32.30%
4	Ascott Residence Trust	44.94%
5	CapitaRetail China Trust	36.95%
6	Quill Capita Trust	9.69%
7	CapitaMalls Malaysia Trust	23.50%

 

Value In Action

Capitaland can be a equity proxy over the commercial, industrial, residential and retail property investment in the Asian region.

This would be essentially a play in the Asian property sector, the only issue would be with the various listed investment holding vehicles, one would have to dig deep in order to be confident of getting CapitaLand at a “margin of safety” valuation!

 

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All views and opinions articulated in the article were expressed in Mun Hong’s personal capacity and do not in any way represent those of his employer and other related entities. Mun Hong does not own any shares in the companies mentioned above.

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