5 Things You Should Know About CapitaLand

Capitaland_logoFormed in 2000, from the merger of DBS Land (a subsidiary of DBS Bank) and Pidemco Land (a subsidiary of ST Property Investments) CapitaLand Limited (SGX:C31) is one of Asia’s largest real estate companies.

Its core businesses are real estate and real estate fund management, with the company engaged in 110 cities in over 20 countries, although its main focus is Singapore and China.

The CapitaLand group includes CapitaLand Residential Singapore, CapitaLand China Holdings, CapitaLand Commercial, CapitaValue Homes and Australand (listed, 59.3% ownership).

And CapitaLand’s many subsidiaries include shopping mall giant CapitaMalls Asia (SGX:JS8) Ascott Residence Trust (REIT), CapitaCommercial Trust (REIT) (SGX: C38U), CapitaMalls Malaysia Trust (REIT) and CapitaRetail China Trust (REIT).

But did you know:

  1. CapitaLand is South East Asia’s largest developer by market value, with Temasek Holdings (the investing arm of the Singapore government) one of its largest shareholders.
  2. It was ranked 77th in Corporate Knight’s “Global 100 Most Sustainable Corporations 2013”. The only other Singaporean companies to make the cut were City Developments Limited, which bagged 52nd place and StarHub (SGX:CC3) in 66th place.
  3. CapitaVouchers – the shopping vouchers issued when you spend over a certain amount in a CapitaMalls Asia shopping mall, can also be earned if you stay at a CapitaLand serviced apartment – and even when buying a new CapitaLand home.

CapitaLand has certainly got investors talking since it posted its 2013 Q1 results, which revealed a whopping 41.2% jump in net profit to S$188.2m, compared to this time last year.

This profit surge can be attributed to higher rental revenue from its shopping malls as well as strong residential sales. In Singapore alone, 544 new homes were sold in Q1 (481 units in Bukit Timah’s new D’Leedon Condominium alone) worth S$1.3bn – which is equivalent to its total residential unit sales last year.

Sales in China have also been strong, with 955 units sold in Q1, worth another cool S$400m.

But can such success continue, especially if the Singapore government continues to introduce housing market-cooling measures? Indeed, CapitaLand has already slashed prices on units at D’Leedon and Alexandra Road’s The Interlace condominiums by up to 20%, which many believe is necessary in order to shift unsold stock.

Well, with policies in place to grow the population in Singapore, at least, meaning sustained demand for new homes in the long term, CapitaLand remains cautiously optimistic.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. Motley Fool Singapore contributor Alison Hunt doesn’t own shares in any companies mentioned.