This is an excerpt from NRA Capital’s research report on Capital World Limited (SGX: 1D5).
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By Liu Jinshu
Achieved Major Milestones With Flagship Mall Opening
Capital World Limited (Capital World) opened its flagship Capital 21 mall on 17 October 2018. Following this critical milestone, Capital World is now a mall owner and developer with an operating and cash flow generating asset on its balance sheet. We visited the mall within its first week of opening and found the crowd to be encouraging with the mall reportedly being packed during the first weekend. Tenants are still moving in, but the tenancy has been said to be around 70 percent, including space occupied by its theme park.
New Store Openings And Movie Planet To Lure Crowds In 2019
The Capital 21 mall obtained Certificate of Completion and Compliance in May and opened its doors to visitors to its indoor circus in August. We envisage that the number of visitors will likely grow as more tenants move in. The launch of the theme park Movie Planet will also draw visitors in 2019.
Successful Mall To Spur More Than RM450 Million Of New Sales
Another synergy of opening the mall is that the subsequent increase in human traffic will raise the attractiveness of Phase 2 of the Capital City to investors and potentially spur RM450 million of new sales. We estimate the serviced suites and serviced apartments of Phase 2 to have a gross development value of RM455.9 million.
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