CapitaLand’s new complexion

The giant property group’s effort to boost its recurring earnings and cash flow is paying off, and its shares look attractive. Is this the blue-chip property stock to own?

Ho Chi Minh City, named after Vietnam’s revolutionary communist leader, is a buzzing hive of capitalist activity. For Lim Ming Yan, CEO of CapitaLand, it has all the hallmarks of another city he knows well. “It’s reminiscent of the time when we were in Shanghai in the 2000s. We see a lot of opportunities here,” he says.

Already, CapitaLand’s serviced residence arm The Ascott operates five properties in the city, all of them running at close to full occupancy. In all, Ascott owns and manages 22 properties, with 4,600 units in seven cities and provinces in Vietnam. This will rise to 7,000 units by 2020, as the CapitaLand group takes on a number of development projects.

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