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PR Newswire
22-06-2011, 05:31 AM
Business Times - 22 Jun 2011
CapitaLand aims to double China portfolio in 5 years
(SHANGHAI) CapitaLand Ltd, which has $10.4 billion of assets in China, said that it is aiming to double its portfolio in the country in the next five years as it expects the economy to expand over the next decade.
CapitaLand, South-east Asia's biggest developer, expects new investments in all sectors in the country, including apartments, shopping malls, service residences and the Raffles City brand of office and retail developments, chief operating officer Lim Ming Yan said in an interview in Singapore on Monday.
'China's market is very big, and it's growing very fast,' said Mr Lim, who was chief executive officer of CapitaLand's operations in China from 2000 to 2009. 'We will continue to invest significantly in real estate sectors globally, and China will be a major one.'
China overtook Singapore as CapitaLand's biggest market by assets in the first quarter, making up 37 per cent of its holdings, followed by 35 per cent in the city-state. The Singapore- based company expects to expand in its key markets with the capacity to invest a further $2 billion this year, based on the $6 billion spent on new investments globally in 2010, Mr Lim said.
CapitaLand shares climbed 3.3 per cent to close at $2.85 yesterday, the third-best performer on the benchmark Straits Times Index and its biggest one-day gain in more than three months.
Ascott Holdings Ltd, the company's service residence operator, plans to almost double its portfolio in China to 12,000 from 6,600 apartment units by 2015, while CapitaMalls Asia Ltd, its shopping mall unit, aims to double its holdings to 100 malls from 53 within three to five years, it said. China's retail sales rose 16.9 per cent in May and foreign direct investment surged 13.4 per cent to US$9.2 billion, according to government data.
The expansion into China comes as the country is stepping up property curbs amid concerns that prices are becoming unaffordable. The central bank on June 14 ordered banks to hold more money as reserves for the sixth time in 2011 as it fights to contain inflation.
Chinese developers' outlook was cut to 'negative' from 'stable' by Standard & Poor's on June 15 on concern that tighter credit and further curbs may lead to rating downgrades in the next year. Property sales may start to slow as the policy 'starts to bite', leading to price cuts that may drive home prices 10 per cent lower in the next year, S&P said.
CapitaLand's residential projects in China accounted for 12 per cent of its global portfolio, and it has formed a separate unit to build so-called value homes in the country to tap on demand for lower-priced apartments after focusing on the mid to high-end housing market, Mr Lim said.
China last month said that it will maintain curbs after intensifying measures this year with higher minimum down payments for second homes and residential property taxes in Shanghai and Chongqing.
'The policy is effective,' said Mr Lim, who expects home prices to 'moderate' by as much as 5 per cent in the second half in some Chinese cities. 'Price increases have moderated significantly. Volume has dropped.' - Bloomberg
CapitaLand aims to double China portfolio in 5 years
(SHANGHAI) CapitaLand Ltd, which has $10.4 billion of assets in China, said that it is aiming to double its portfolio in the country in the next five years as it expects the economy to expand over the next decade.
CapitaLand, South-east Asia's biggest developer, expects new investments in all sectors in the country, including apartments, shopping malls, service residences and the Raffles City brand of office and retail developments, chief operating officer Lim Ming Yan said in an interview in Singapore on Monday.
'China's market is very big, and it's growing very fast,' said Mr Lim, who was chief executive officer of CapitaLand's operations in China from 2000 to 2009. 'We will continue to invest significantly in real estate sectors globally, and China will be a major one.'
China overtook Singapore as CapitaLand's biggest market by assets in the first quarter, making up 37 per cent of its holdings, followed by 35 per cent in the city-state. The Singapore- based company expects to expand in its key markets with the capacity to invest a further $2 billion this year, based on the $6 billion spent on new investments globally in 2010, Mr Lim said.
CapitaLand shares climbed 3.3 per cent to close at $2.85 yesterday, the third-best performer on the benchmark Straits Times Index and its biggest one-day gain in more than three months.
Ascott Holdings Ltd, the company's service residence operator, plans to almost double its portfolio in China to 12,000 from 6,600 apartment units by 2015, while CapitaMalls Asia Ltd, its shopping mall unit, aims to double its holdings to 100 malls from 53 within three to five years, it said. China's retail sales rose 16.9 per cent in May and foreign direct investment surged 13.4 per cent to US$9.2 billion, according to government data.
The expansion into China comes as the country is stepping up property curbs amid concerns that prices are becoming unaffordable. The central bank on June 14 ordered banks to hold more money as reserves for the sixth time in 2011 as it fights to contain inflation.
Chinese developers' outlook was cut to 'negative' from 'stable' by Standard & Poor's on June 15 on concern that tighter credit and further curbs may lead to rating downgrades in the next year. Property sales may start to slow as the policy 'starts to bite', leading to price cuts that may drive home prices 10 per cent lower in the next year, S&P said.
CapitaLand's residential projects in China accounted for 12 per cent of its global portfolio, and it has formed a separate unit to build so-called value homes in the country to tap on demand for lower-priced apartments after focusing on the mid to high-end housing market, Mr Lim said.
China last month said that it will maintain curbs after intensifying measures this year with higher minimum down payments for second homes and residential property taxes in Shanghai and Chongqing.
'The policy is effective,' said Mr Lim, who expects home prices to 'moderate' by as much as 5 per cent in the second half in some Chinese cities. 'Price increases have moderated significantly. Volume has dropped.' - Bloomberg
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