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Despite the ongoing renovation of Funan mall, CapitaLand Mall Trust (CMT) remains the biggest owner of shopping centres here in terms of floor area, reported Singapore Business Review.
According to Maybank Kim Eng, CMT controls a 14 percent market share that was further bolstered by the recent completion of its purchase of the remaining 70 percent stake it did not already own in Westgate mall for $789.6 million.
CMT’s market share in Singapore is expected to rise to 15 percent following the reopening of Funan mall next year, while its distribution per unit (DPU) is projected to grow by 1.0 percent to 7.0 percent now that it’s the full owner of Westgate mall (pictured).
In addition, prospects of the trust’s suburban properties appear promising as more homes will be built in such locations.
“Government decentralisation policies should back longer-term suburban retail demand, based on existing catchment populations and official planning parameters,” said Maybank KE analyst Chua Su Tye.
“These imply a 48 percent increase in 1.05 million dwelling units as of end March 2018 to 1.55 million over the next 10 to 20 years which could potentially support CMT’s suburban properties.”
Over the next 12 months, CMT’s growth is expected to be driven by experimental concepts like Funan’s repositioning as Singapore’s first online-and-offline (O&O) mall and NomadX at Plaza Singapura.
Meanwhile, Maybank Kim Eng revealed that CapitaLand is anticipated to benefit from next year’s opening of Jewel Changi Airport, a joint venture of Changi Airport Group and CapitaMalls Asia.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
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