CapitaLand recently announced that it has signed a Property Management Agreement to manage the retail mall at the new SingPost Centre, which has five floors and an NLA of 16.4k sqm. Tenants that have signed up at the centre include NTUC FairPrice, Golden Village, Kopitiam and other leading retail brands.

The centre is located beside the Paya Lebar MRT interchange station and will also house the new General Post Office. Both the retail mall and General Post Office will be open for operations in 2H17.

We see this as a positive development which will widen the group’s retail network and further strengthen its leading position as the largest mall operator in Singapore. Maintain our BUY rating on CapitaLand with an unchanged fair value estimate of S$3.68.

Source: OCBC Research - 29 Mar 2017