CapitaLand (C31.SG) off 0.3% at $4.04 in light trade, hardly swayed by developer’s $969.6 million sale of 28 serviced residence properties held by wholly-owned Ascott to Ascott REIT (A68U.SG), says Dow Jones.
“The impact on CapitaLand is likely to be muted” as developer will realise mere $52.1 million gain, although remaining proceeds expected to be re-invested, says Citigroup; has Buy call with $4.34 target. Shares likely to hold above $4.00.
Daiwa has cut Ascott Residence Trust (A68U.SG) to Hold from Outperform, saying recovery in serviced residence operator’s business will be protracted: “Some of its key markets are not yet in clear recovery mode.”
The Ascott, CapitaLand’s wholly-owned serviced residence business unit, has secured a contract to manage its second Citadines-branded serviced residence in Indonesia.
When completed in 2011, the 135-unit Citadines Jakarta Rasuna will offer a range of studio, one- to three-bedroom stylish apartments.
The Ascott, CapitaLand’s wholly-owned serviced residence business unit, will open its second Citadines property in the country on March 8. The new Citadines Kyoto Karasuma-Gojo follows the opening of Ascott’s first Citadines serviced residence in Japan, Citadines Tokyo Shinjuku, last March.
CapitaLand’s wholly-owned serviced residence business unit, The Ascott Limited, has clinched a contract to manage Citadines Xi’an Xingqing Palace, its third serviced residence in Xi’an, China.
Ascott’s two other serviced residences in Xi’an are Citadines Xi’an Central, which is currently operational and Citadines Xi’an Gaoxin, due to open in 2010.
The Ascott, CapitaLand’s wholly-owned serviced residence business unit, has opened Ascott Raffles City Beijing, its fifth serviced residence in the Chinese capital.
Housed within the Raffles City complex, one of five in China, gives residents of Ascott Raffles City Beijing the convenience of working, shopping and dining under one roof.
