Brokers' take
CapitaLand Commercial Trust (CCT) | Buy (maintained) March 12 close: S$1.97 Price target: S$1.95 Jefferies Singapore, March 12
While the market is favourable, managers of CCT are trying to maximise revenue. It has selectively started discussing renewal of certain leases for second half of 2019 and first half of 2020. We like the fact that management is proactively engaging tenants. In particular, we will be watchful of about 20 per cent of space due for renewal in CapitaGreen and Asia Square 2.
HSBC Building is likely to undergo asset enhancement initiatives once the current lease expires in April next year. Currently, it is too early to ascertain the needed capex and downtime period. About 40,000 square feet of space is pre-committed in Funan development. While the Funan office space is relatively small and CapitaLand Mall Trust will be able to manage it, we think this may help to mitigate the shortfall from HSBC building to some exten…
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Tesla cuts US prices by US$2,000 as sales slow, inventories swell
Volkswagen workers vote decisively to unionise in Tennessee
Sony deal for Paramount would draw added regulatory scrutiny
Bitcoin 'halving' has taken place: CoinGecko
Lululemon to shutter Washington distribution center, lay off 128 employees
Wall Street bonus rules return to regulatory agenda in third try