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3 Things About CapitaLand Mall Trust That Investors Should Know Right Now

CapitaLand Mall Trust (SGX: C38U) is the first real estate investment trust (REIT) listed in Singapore. It is also the largest retail REIT by market capitalisation here. Some of the malls in its portfolio include Tampines Mall, Junction 8, and Plaza Singapura.

In this article, let’s look at three things that investors should know about the REIT now.

Funan – Singapore’s first O&O shopping centre

Once a one-stop shop for all our IT needs, Funan DigitaLife Mall, was closed in July 2016 for redevelopment. Now renamed simply as Funan, the new mall is set to rejuvenate the retail scene.

Funan, when it re-opens next year, will be Singapore’s first online-and-offline (O&O) shopping mall which integrates online, offline, data and logistics to empower retailers’ omnichannel strategy and transform customers’ shopping experience. This was announced by the REIT recently.

Some of the digital innovations at Funan include a smart interactive directory that uses facial recognition to provide shoppers with tailored recommendations, video analytics to study shopper traffic and crowd density, and video-based smart carparks.

The retail and office components of Funan are set to open in the second quarter of 2019, instead of the earlier announced 2019 third-quarter. The opening of lyf Funan Singapore, the co-living serviced residences within Funan, has also been brought forward to the fourth quarter of 2019 from 2020.

To know what else the new Funan has in store, you can head here.

Westgate full acquisition

At the end of August, CapitaLand Mall Trust made public that it would be buying the remaining 70% of Westgate that it does not already own. The REIT currently owns 30% of the shopping mall in Jurong East.

The acquisition is based on an agreed market value of Westgate at S$1.13 billion (on a 100% basis). The total outlay by the REIT is estimated to be S$805.5 million, which would be funded through debt or a combination of debt and equity funding.

By having full control of Westgate, CapitaLand Mall Trust can fully capitalise on the strengths of Westgate, together with the REIT’s IMM Building and JCube in the same area, to tap onto the growth of Jurong. The Singapore Government plans to add 20,000 homes and create 100,000 new jobs in the Jurong Lake District. A new Jurong Region Line will join up with the existing Jurong East MRT station as well.

To know more about the REIT’s Westgate acquisition, you can check out my colleague Chong Ser Jing’s take here.

CapitaLand Mall Trust’s valuation

Yesterday, the retail REIT’s units last changed hands at S$2.20 each. This gives a price-to-book ratio of 1.09 and a distribution yield of 5.1%.

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The information provided is for general information purposes only and is not intended to be personalised investment or financial advice. The Motley Fool Singapore has recommended units of CapitaLand Mall Trust. Motley Fool Singapore contributor Sudhan P owns units in CapitaLand Mall Trust.