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CapitaMall Trust to acquire Iluma for S$295 million
Planned integration with neighbouring Bugis Junction will create
unique seamless shopping destination in popular Bugis precinct
http://info.sgx.com/webcoranncatth.nsf/V...40060CACB/$file/CMT-news_release_Iluma_28Feb2011.pdf?openelement
CMA is the REIT Manager of CMT so it should reap higher recurring Management fees going forward. Strangely, the share price took a beating and currently stands at $1.72 (18.8% discount to its IPO price).
(Not Vested)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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Hi Nick,
I copied out one post from "CapitaMall Asia" to create a new thread. Thanks.
Specuvestor: Asset - Business - Structure.
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I am guessing CMT will invest in asset enhancements to boost its occupancy (quite low) and attract greater shopping traffic in order to boost its NPI yield in the future.
CMA will benefit from one-off acquisition fees and higher recurring base fees.
(Vested in CMA)
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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not much effect for CMA. CMA AUM is too huge. 300 million does not make a difference.
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(28-02-2011, 05:26 PM)freedom Wrote: not much effect for CMA. CMA AUM is too huge. 300 million does not make a difference.
It wouldn't make much difference to the bottom-line. The very same acquisition isn't going to make difference on CMT distributable income either. I am just waiting for CMA to divest Ion to CMT in the future.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.
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28-02-2011, 06:06 PM
(This post was last modified: 28-02-2011, 06:07 PM by freedom.)
til Ion is worth above 3 billion or much more.
CMT needs a huge equity fundraising to acquire Ion.
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> Erm, Iluma doesn't have as much traffic as Bugis Junction as far as I know. So, will the tenants have the ability to service
> their rental?
It is for this reason that CMT buys Iluma. The mall is under utilised. The capitaland guys have got the system to bringing in the crowd and tenants. There is not many malls in the area apart from bugis.
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