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Qibao Mall, Shanghai |
“2006 has been a
spectacular year for CMT.
As we further
strengthen
our position as the largest
REIT by asset size and
market capitalisation in
Singapore, it remains
imperative for
us to
proactively manage
our quality portfolio to
deliver stable distributions
and sustainable total
returns to unitholders.”
Mr Pua Seck Guan
CEO, CapitaMall Trust Management Limited
China
In 2006, the US$600 million
CapitaRetail China Development Fund,
and the US$425 million CapitaRetail
China Incubator Fund were established
to invest in new retail development
projects, and to warehouse and
capitalise on underperforming retail
malls, respectively. Both funds also
serve to provide a strong proprietary
pipeline of quality retail malls for CRCT.
Malaysia
CFL was involved in the listing
of QCT on the Bursa Malaysia on
8 January 2007. QCT is focused on
investing in commercial properties
located in Malaysia. It has an initial
portfolio of four commercial properties
valued at RM280 million. QCT closed
17% higher than its retail offer price
of 84 sen on its first day of trading,
reflecting strong investor demand.
In addition, CFL launched the
US$250 million Malaysia Commercial
Development Fund (MCDF) with
Malaysia’s largest banking group,
Maybank Group. This will be one
of Malaysia’s largest property funds,
with expected gross development value
of US$1 billion. Where appropriate,
MCDF projects will form a pipeline of
commercial properties to be acquired
by QCT.
CFL is the manager of the
Mezzo Capital Fund which has
been fully invested in several
prime residential condominiums
in Kuala Lumpur. This included
Hampshire Residences in the KLCC
area, Kiaraville and Tiffani by i-ZEN,
both located in the prestigious district
Mont’ Kiara, and Zehn Bukit Pantai
which is located in Bangsar.
India
During the year, CapitaLand
committed to invest up to
US$75 million in the Horizon Fund,
an international fund sponsored by
India’s largest retailer Pantaloon
Retail (India) Ltd, which will invest
predominantly in retail real estate
developments in India. The Horizon
Fund has an initial closing of
US$263 million and a target fund
size of US$350 million. There are
plans between CapitaLand and
Pantaloon to create retail funds or
REITs within the next few years to
capture the tremendous growth in
the India retail real estate market.
Japan
In 2006, the CapitaRetail Japan
Fund (CRJ Fund) acquired its fifth
mall in Hokkaido for over
JPY4 billion.
The Fund’s asset size grew to
JPY45.2 billion with the purchase.
CRJ Fund’s mandate is to invest
in Japanese retail assets that
have a secured and steady income
stream, and with potential for
asset enhancement.
The ARC-CapitaLand Residences
Japan venture, a Shariah-compliant
property vehicle jointly owned
by CapitaLand and affiliates of
Bahrain-based Arcapita Bank B.S.C.
(c) (Arcapita), acquired five rental
apartment buildings worth about
JPY7.5 billion in 2006. The joint
venture also secured commitments on 11 rental apartment buildings
worth about JPY11.6 billion. With
a total commitment of JPY28 billion
comprising 21 properties with
1,754 units, the joint venture had
almost reached its initial target
size of JPY30 billion. Hence it
was decided to expand its target
portfolio size to JPY42 billion.
Set up in 2005, the joint venture
invests in a portfolio of income-producing
rental apartment buildings
in Japan’s key cities.
“The Raffles City
acquisition, with CMT,
was a major milestone
and a huge success for CCT. It was the largest
real estate acquisition
in Singapore and the
second largest in Asia
for 2006, reinforcing
CCT’s position as the
dominant commercial
REIT in Singapore.
Looking ahead, we will
continue to be proactive
in our asset management
efforts and make
accretive acquisitions
to grow our portfolio of
quality properties.”
Mr David Tan
CEO, CapitaCommercial Trust Management Limited
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