Research from SooChow CSSD Capital Markets (Asia), SCCM Asia Research

SCCM Asia Research

Headquartered in Singapore, SooChow CSSD Capital Markets (Asia) is an investment bank focusing on emerging growth companies across Asia, providing a full suite of investment banking services, including corporate finance, mergers and acquisitions advisory, equity capital markets, institutional equities sales and trading and equities research.

Research from SooChow CSSD Capital Markets (Asia)

Thematic (Sector/Industry)

Philippines Real estate / Thematic (Sector/Industry)

<h2>Singapore</h2><h3><a href="https://www.smartkarma.com/entities/capitaland-ltd" target="_blank" data-smartkarma-citation="entities:55" rel="noopener">Capitaland (CAPL SP)</a> divests partial stakes in six Raffles City developments in China; Exceeded divestment target by ~3x for FY21</h3><ul><li>CAPL has entered into conditional agreements to divest partial stakes in six Raffles City (RC) developments in China to Ping An Life Insurance Company. Ping An will acquire 70.0% onshore stake in RC Beijing, RC Chengdu, RC Ningbo, RC Hangzhou and RC Changning; and 60.0% onshore stake in RC Shanghai</li><li>Post-transaction, CAPL will retain an effective stake of 12.6-30% in each development. Under its signature Raffles City trademarks, CAPL will also continue to provide asset management services for these developments and earn fee income. The agreed value for the portfolio is RMB46.7bn (~S$9.6bn), a 6.7% premium to valuation. Targeted for completion in 3Q21, the transaction is expected to generate net proceeds of more than S$2bn. The transaction is set to bring the total capital recycled across the Group to ~S$11.2bn YTD. This is more than three times the set annual target of S$3bn. Concurrently, its Funds Under Management (“FUM”) grows to S$79.2bn</li><li>Part of the unlocked capital will be used to support the Group’s investment pivot to new economy assets such as business parks, logistics and data centres. CapitaLand plans to grow its China exposure in this sector to S$5bn over the next few years, from the S$1.5bn as at end 2020. <section class="figure"><figure class="editor-figure mceNonEditable"><img src="https://static-prod.smartkarma.com/images/media/000/215/586/original/image004.png?1624844847" class="editor-image img-responsive" data-smartkarma-image-id="215586"></figure></section></li></ul>

SingaporeCapitaland (CAPL SP) divests partial stakes in six Raffles City developments in China; Exceeded divestment target by ~3x for FY21CAPL has entered into conditional agreements to divest partial stakes in six Raffles City (RC) developments in China to Ping An Life Insurance Company. Ping An will acquire 70.0% onshore stake in RC Beijing, RC Chengdu, RC Ningbo, RC Hangzhou and RC Changning; and 60.0% onshore stake in RC ShanghaiPost-transaction, CAPL will retain an effective stake of 12.6-30% in each development. Under its signature Raffles City trademarks, CAPL will also continue to provide asset management services for these developments and earn fee income. The agreed value for the portfolio is RMB46.7bn (~S$9.6bn), a 6.7% premium to valuation. Targeted for completion in 3Q21, the transaction is expected to generate net proceeds of more than S$2bn. The transaction is set to bring the total capital recycled across the Group to ~S$11.2bn YTD. This is more than three times the set annual target of S$3bn. Concurrently, its Funds Under Management (“FUM”) grows to S$79.2bnPart of the unlocked capital will be used to support the Group’s investment pivot to new economy assets such as business parks, logistics and data centres. CapitaLand plans to grow its China exposure in this sector to S$5bn over the next few years, from the S$1.5bn as at end 2020. 

ASEAN Builder's Scoop (28Jun21) - CAPL Divesting 6 RC China Stakes