Yahoo Finance 
Stocks In Focus SG (CapitaRetail China Trust, Kingsmen, Oxley) – 15/07/13
CRCT To Acquire Beijing’s Grand Canyon Mall
CapitaRetail China Trust (CRCT) to purchase yield accretive Grand Canyon Mall from CapitaMalls Asia, valued at Rmb1.83 billion ($375.1 million) as at 15 April 2013. The expected total investment cost for the acquisition is approximately Rmb1.82 billion ($370.3 million) or about Rmb26,000 ($5,329) per square metre. Based on the purchase price, the mall presently has an annualised net property income (NPI) yield of approximately 3.5 percent while the longer term targeted NPI yield is in the range of 7 to 8 percent. Currently in its third year of operations, Grand Canyon Mall serves a population of 650,000 people within a five kilometre radius. CRCT intends to fund the acquisition, expected to be completed by 2Q14, through its existing cash and new debt amounting to between $286.9 million and $327.9 million with the remainder from new equity financing. With the purchase, CRCT possesses ten malls in China with five malls located in Beijing.
Significance: The committed occupancy rate of the Grand Canyon Mall was 92.7 percent as of April 2013 and is expected to attain close to full occupancy next year. Leases contributing approximately 52 percent of the mall’s monthly gross rent are expiring from July 2013 to 2015, presenting potential upside in rental income from the lease renewals.
Kingsmen Secures $75.4m Worth Of Contracts
Kingsmen Creatives announced that it has won contracts valued at $75.4 million with five contracts valued at $31 million for the Formula 1 Singapore Grand Prix by Singapore GP and the remaining $44.4 million comprising of three contracts for works at a theme park in China. The five contracts with Singapore GP, awarded to its subsidiary, Kingsmen Exhibit, consists of construction of grandstand seats at the Esplanade Waterfront, Padang and Pit Straight over three years, as well as interior fit out works at the Paddock Club, and works at corporate hospitality suites over five years. In addition, the three contracts for the theme park in China, secured through Kingsmen Shanghai, is set to complete before the scheduled opening at the end of 2015, encompassing the design, fabrication and installation of thematic show sets, props, lightings and audio visual fittings, among others.
Significance: The contracts are expected to contribute positively to the earnings per share or net tangible assets per share of Kingsmen Creative, and its subsidiary companies over next five years. As at 14 May 2013, the company has been awarded contracts of approximately $166 million, of which $137 million is expected to be recognised in FY13.
Oxley Plans US$11.3m Acquisition Of Land In Cambodia
Oxley Holdings announced that its 49 percent-owned associated company, Oxley-Worldbridge (Cambodia), had entered into a share sale and purchase agreement to acquire all the shares in the capital of CityStar Phnom Penh Cottages (CPPC), for an aggregate purchase consideration of US$11.3 million including a deposit of US$2.3 million. CPPC is a company incorporated in Cambodia with an issued capital of KHR4 million (approximately $1,246) comprising of 1,000 shares, holding two pieces of land on Sangkat Srah Chork, Khan Daun Penh, Phnom Penh Capital, Kingdom of Cambodia, which will be transferred to Oxley-Worldbridge upon completion of the acquisition. The land, zoned for commercial and residential development, has a freehold tenure and total area of approximately 6,625 square metres. Subject to obtaining all the necessary approvals from the relevant authorities, Oxley-Worldbridge intends to redevelop the land together with the adjoining land. The acquisition is said to be completed no later than three months from the date of shares sales and purchase agreement
Significance: Based on a valuation of the land commissioned by Oxley-Worldbridge, the land had a market value of US$12.3 million as at 12 June 2013 which is higher than the purchase consideration of US$11.3 million. The purchase is not expected to have any impact on the earnings per share or net tangible asset per share for FY14.
More From Shares Investment:
