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Restructuring of Capitaland
24 Mar 2021 (173 views)

Capitaland will be restructured later in 2021. The existing shareholders will get shares in a new structure, called CLIM (Capitaland Investment Management) which will operate like a REIT.

I expect that CLIM will pay out a dividend of around 4% to 4.5% p.a. This is the payout for most of the REITS in Singapore.

The shareholder of Capitaland will get shares in CLIM and Capitaland Integrated Commercial Trust worth about $4.10.

More details here:
https://www.mingtiandi.com/real-estate/finance-real-estate/capitaland-proposes-to-privatise-development-business/

The current share price of Capitaland is $3.71.

Is it worthwhile to buy Capitaland at $3.71 and wait for the restructuring, hopefully to get the CLIM shares that is potentially worth $4.10?

There is the risk that the value of the CLIM shares will fall below $4.10 but this risk will probably apply to other REITS as well.

If investors are keen to own REITS, they now have the chance to get the CLIM REIT at a 10% discount.

Note - this is my observation. I am not recommending an investment in Capitaland shares.

The chart below shows the REITS currently 


Restructuring of Capitaland
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Capitaland will be restructured later in 2021. The existing shareholders will get shares in a new structure, called CLIM (Capitaland Investment Management) which will operate like a REIT.

I expect that CLIM will pay out a dividend of around 4% to 4.5% p.a. This is the payout for most of the REITS in Singapore.

The shareholder of Capitaland will get shares in CLIM and Capitaland Integrated Commercial Trust worth about $4.10.

More details here:
https://www.mingtiandi.com/real-estate/finance-real-estate/capitaland-proposes-to-privatise-development-business/

The current share price of Capitaland is $3.71.

Is it worthwhile to buy Capitaland at $3.71 and wait for the restructuring, hopefully to get the CLIM shares that is potentially worth $4.10?

There is the risk that the value of the CLIM shares will fall below $4.10 but this risk will probably apply to other REITS as well.

If investors are keen to own REITS, they now have the chance to get the CLIM REIT at a 10% discount.

Note - this is my observation. I am not recommending an investment in Capitaland shares.

The chart below shows the REITS currently