* CapitaLand to zero in on core markets including China
* Shares end 2.1 pct to two-year high
* Restructuring helps simplify complex organisation -
By Kevin Lim and Charmian Kok
SINGAPORE, Jan 3 Southeast Asia's largest
property developer CapitaLand Ltd is restructuring its
businesses to focus on its core markets of Singapore and China,
which together account for more than half of its revenue.
CapitaLand, about 40 percent-owned by Singapore state
investor Temasek Holdings, is considering exiting from
the office and home segments in the United Kingdom and India,
but will remain invested in serviced residences and malls, Chief
Executive Officer Lim Ming Yan said on Thursday.
Europe accounted for 7 percent of CapitaLand's revenue in
2011, while Asia, excluding Singapore and China, accounted for
just 5 percent, Thomson Reuters data shows.
"It doesn't make sense for us to be fully engaged in India.
Lim told reporters after announcing key management changes.
"It's not the value of the investments. It's really the
management focus and management attention that is needed."
He said CapitaLand is considering exiting the Gulf
Cooperation Council, a six-member trade bloc in the Middle East.
The firm is also reviewing its presence in Australia and
CapitaLand, which has a 59 percent stake in Australand
Property Group, was treating its Australand holding
more like a financial investment, and that Australand's business
model differed from CapitaLand, Lim said.
The investment in Australand accounts for about 14 percent
of its asset base, CapitaLand officials said.
"What I think they are trying to do is to address investor
concerns of them being too complex, with exposure to too many
places and segments. With new management, this is probably their
first step in trying to address their complex structure," said
Donald Chua, an analyst at CIMB Research.
"This year, for CapitaLand, a lot of their China projects
will be completed, which means a lot of the income will flow
through this year," said Chua.
CapitaLand shares rose 2.1 percent to end at S$3.84 on
Thursday, their highest level since January 2011.
The stock surged around 67 percent last year, beating the 48
percent rise in the FT ST Real Estate Index. Out
of 23 brokers tracking CapitaLand, 17 have a buy or strong buy
rating on it, five have a hold and one has a sell rating.
CapitaLand has organised its businesses into four main areas
- CapitaLand Singapore, CapitaLand China, CapitaMalls Asia
and The Ascott Ltd.
CapitaLand competes with Hong Kong's Cheung Kong (Holdings)
Ltd, Sun Hung Kai Properties Ltd and
Singapore's City Developments and the privately-held
Far East Group.