City Developments acquires 30% stake in Millenium & Copthorne’s Ginza project

M&C owns the remaining 70% stake, allowing it to gain a strategic foothold in Tokyo’s most famous shopping, dining and entertainment district.

According to Kim Eng’s report, M&C will be working with Mitsui Fudosan to redevelop the prime site in Ginza into a deluxe 325‐room hotel, slated for completion by end‐2014.

Here’s more from Kim Eng:

City Developments Limited recently announced that it will take 30% stake in a development acquired by subsidiary Millenium & Copthorne , in Ginza, Tokyo. M&C owns the remaining 70% stake.

The acquisition allows M&C to gain a strategic foothold in Tokyo’s most famous shopping, dining and entertainment district at what we believe is a reasonable price. Going into 2012, the potential slowdown in M&C’s impact on its bottomline.

Our View
M&C will be working with Mitsui Fudosan to redevelop the prime site in Ginza into a deluxe 325‐room hotel, slated for completion by end‐2014. Mitsui Fudosan will be the project manager and the eventual lessee to operate the hotel. M&C estimates the total development cost including land to be £113m, or £349,000 per key. We think this is a fair price as we estimate the breakeven Average Room Rate to be £173/night, whereas the hotel may eventually command an ARR of £200/night.

Meanwhile, the ongoing Eurozone debt crisis could weigh on the hospitality business in Europe, particularly if the demand for business travel given that Europe ex‐London generally constitutes less than 5% of its EBITDA. In contrast, London, its biggest market in Europe and accounting for about 25% of earnings, should perform well next year as the city hosts the 2012 Summer Olympics from 27 July to 12 August.

In Singapore, we expect CDL to moderate the pace of its new launches. High‐end projects such as Lucky Tower may not be rolled out until the jitters in the global markets dissipate. On the other hand, the raising of the monthly income ceiling from $10,000 to $12,000 to buy Executive Condo flats should benefit CDL, which still has about 700 unsold EC units from Blossom Residences and a yet‐to‐be‐launched site at Choa Chu Kang.

Action & Recommendation
Given the strong likelihood of a recession next year, we see few positive catalysts to upgrade our call on CDL. Maintain HOLD on resilient earnings and rock solid balance sheet. Target price maintain at $11.05, pegged at a 15% discount to RNAV.

You're the reader we write for. You're also the person our partners want to reach.

If that sentence describes you — a founder, a C-suite, someone whose attention companies pay good money for — then you already understand why SBR works. We've spent twenty years earning the trust of readers exactly like you. Which is exactly what makes this an interesting place for your company to show up, too.

The ways it can show up are broader than most people assume — thought leadership articles, sponsored content, industry summits across Southeast Asia, regional awards programmes, podcasts, and media placements in print and digital. The right fit depends on what you're trying to do, which is why we'd rather start with a conversation than send a rate card.

If your company has something this audience should know about, we'd like to hear what you're working on.

No rate cards until we understand the brief. It's a better use of everyone's time.

Book a meeting

| Or download the media kit (PDF)

240,000 senior readers quarterly in print Top 1,700 Singapore companies reached

7 markets across Southeast Asia

Top News

30 One-Sentence Stories From People Who Have Built Better Habits

None of these stories are mine. They were sent to me by readers of Atomic Habits. My hope is that these examples will illustrate how real people are putting the book into practice. They will show you what people are actually doing to build good habits and break bad ones. And hopefully, they will spark some ideas for how you can do the same.

news conversion

SBR 5 Lorem Ipsum News 2 [8 May]

Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

SBR 4 Lorem Ipsum [8 May Top Stories]