Brokers' take: DBS, UOBKH deem CapitaLand Reits' merger attractive

Last week, the two Reits also announced deal sweeteners for the merger, such as higher accretion to their respective distribution per unit and CMT's manager completely waiving its S$111.2 million acquisition fee.

"CICT will become the best proxy for S-Reits . In addition, the enlarged scale positions will allow CICT to take on large scale integrated developments," said the brokerage in a sector update on Monday. CICT will have a large development headroom of S$5.8 billion, assuming the unitholders approve the higher 15 per cent cap for redevelopment of existing buildings, wrote UOBKH analysts Jonathan Koh and Loke Peihao.

The combined Reit portfolio will also have eight office assets and 11 retail properties, making up 38 per cent and 33 per cent of CICT's portfolio valuation respectively. In addition, net property income contribution from the top five properties will be reduced to 43 per cent for CICT, from CMT's current 50 per cent and CCT's 82 per cent.

Malaysia Malaysia Latest News, Malaysia Malaysia Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

DBS says worst over for earnings of Singapore-listed companiesSINGAPORE (THE BUSINESS TIMES) - Despite deep cuts in the latest quarterly earnings of Singapore-listed companies and trusts, the worst is now behind them, said DBS Group Research in a market strategy report on Monday (Sept 7).. Read more at straitstimes.com.
Source: The Straits Times - 🏆 8. / 63 Read more »

Brokers' take: DBS says worst over for listco earnings; Maybank likes Wilmar, ComfortDelGroDESPITE deep cuts in the latest quarterly earnings of Singapore-listed companies and trusts, the worst is now behind them, said DBS Group Research in a market strategy report on Monday. Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »