CapitaLand Mall Trust and CapitaLand Commercial Trust are looking to combine. What do you think of it? - Seedly
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Anonymous

Asked on 22 Jan 2020

CapitaLand Mall Trust and CapitaLand Commercial Trust are looking to combine. What do you think of it?

CapitaLand Mall Trust and CapitaLand Commercial Trust announced that they are going to merge. What are your thoughts on it? If you own the REIT, is it a good deal for you?

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Rave Ong Ci De
Rave Ong Ci De
Level 6. Master
Answered on 22 Jan 2020

Hopefully, there is some synergy and cost may go down,e.g REITs manager fees, share's fee). Another benefit would be that they are able to go for bigger projects since they can have more debt. (REITs has a cap to their gearing ratio, so if there is a bigger base, there can be more debt).

I think these would be the main benefits.

Deal-wise, they seem to be paying fair value for it, rather than a premium. But hey, at least they are not undercutting it.

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L
Lim
Level 2. Rookie
Answered on 02 Jun 2020

Hi, sorry I'm new to investing.

Back to this equation. If I bought [email protected] n mkt goes up to $2, is it better to take profit, or Capitaland offer is better?

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Tay WenHao
Tay WenHao

02 Jun 2020

No difference. Its up to you if you want to continue being invested in capitaland. . You can think of it as, when they merged, you are selling CCT @ $2 and buying the new merged counter.
Wilson Nid A Break
Wilson Nid A Break
Level 9. God of Wisdom
Answered on 22 Jan 2020

It showed a lack of home grown ideas to grow CMT beyond its current portfolio.

Adds another layer of complexion to the analysis. Malls you can simply stroll in and experience it yourself, harder to do that for commercial office

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