Friday 16 March 2012

CapitaRetail China Trust-Additional Investments

Have decided to give Mapletree REITs a miss and invest into CapitaRetail China Trust. Just been back from China recently and I have been awed by the rapid development there. There is no doubt that China is getting more powerful and many of its people are moving up in terms of earning power.

CapitaRetail China Trust (CRCT) is the first and only People's Republic of China shopping mall real estate investment trust (REIT) in Singapore with a portfolio of nine income-producing shopping malls. It is established with the objective of investing on a long term basis in a diversified portfolio of income-producing real estate used primarily for retail purposes and located primarily in China, Hong Kong and Macau.

In particularly, I like the fact that CRCT focuses on retail business which offers resilience in earnings from the tenancy agreements signed. This will enable the business to do well even during times of economic crisis. A significant portion of the properties' tenancies consists of major international and domestic retailers such as Wal-Mart, Carrefour and the Beijing Hualian Group (BHG) under master leases or long-term leases.

Growing with the Chinese Consumer is indeed a good theme for CRCT annual report.

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