Friday 29 Mar 2024
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KUALA LUMPUR (Jan 27): Hong Leong IB Research (HLIB) has maintained its “Hold” rating on CapitaMalls Malaysia Trust (CMMT) with a higher target price of RM1.61 (from RM1.50) after CMMT entered into sale and purchase agreements for acquisition of Tropicana City Mall and Tropicana City Office Tower for a total purchase consideration of RM540 million from Tropicana City Sdn Bhd.

In a note Tuesday, the research house said it was positive on the news given the quality of the properties such as located in the intersection of two major highways (Sprint Highway and LDP), close proximity from the established and affluent residential neighbourhood and also established tenant mix with high occupancy rates.

“Maintain Hold with a higher target price of RM1.61 (previously RM1.50) as we take into account the acquisitions.

“Targeted yield remains unchanged at 6.4% based on historical average yield spread of CapitaMalls Malaysia Trust’s and 7-year MGS,” it said.

 

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