CapitaLand Retail China Trust kept at ‘hold’ by OCBC on the back of upcoming Beijing retail supply

SINGAPORE (June 20): OCBC has reiterated its “Hold” call on CapitaLand Retail China Trust (CRCT), with a target price of $1.43 on the back of a weak retail market and an impending influx of office supply within Beijing.

CRCT’s Beijing exposure comprises five out of 10 malls in its portfolio, with the remaining five located respectively in Shanghai, Wuhan, Zhengzhou, Hohhot, and Wuhu.

Retail sales in Beijing saw a 6.8% decline relative to growth in the same period last year despite registering a slight 1.0% increase y-o-y to RMB161.7 million ($33.1 million) in the first two months of 2016.

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