Bank of Canada Sees Gradual Pace of Rate Cuts to Balance Risks
Bank of Canada officials said monetary policy easing is expected to be “gradual,” as they debate the timing of a pivot to rate cuts.
Latest Videos
The information you requested is not available at this time, please check back again soon.
Bank of Canada officials said monetary policy easing is expected to be “gradual,” as they debate the timing of a pivot to rate cuts.
Iceland’s inflation eased to the slowest pace in more than two years, suggesting its central bank is more likely to begin reducing the western Europe’s highest interest rate in the coming months.
The UK housing market recovery is threatened by investors scaling back bets on how far the Bank of England will cut interest rates, according to a new report.
US mortgage rates increased to the highest level in five months, pushing down home-purchase applications for the fifth time in the last six weeks.
The daughter of a Chinese nickel billionaire purchased a multimillion-dollar mansion in Singapore, adding to the list of wealthy people seizing buying opportunities during the market lull.
Jan 13, 2019
Bloomberg News
,(Bloomberg) -- Singapore developer CapitaLand Ltd. agreed to buy two property units from state investor Temasek Holdings Pte. for S$6 billion ($4.4 billion) in a deal it said will create Asia’s largest diversified real estate company.
CapitaLand will pay a mix of cash and new stock for the assets, it said in a statement on Monday. The deal will bolster its assets to more than S$116 billion, spread across 180 cities in 32 countries, CapitaLand added.
The transaction vaults the company over a 2020 target for assets under management as it moves into logistics, business parks and data centers. The deal also takes the developer deeper into new markets such as the U.S. and Europe, as well as expanding its reach in Singapore.
“The deal looks positive for CapitaLand to drive its long-term earnings growth,” said Patrick Wong, an analyst at Bloomberg Intelligence, citing a 40 percent boost to assets in Singapore.
The company’s 2020 target for assets under management had been S$100 billion. The deal will need approval from independent shareholders.
The transaction “adds a portfolio of operating assets that contribute income today, while adding a sizeable pipeline of development projects,” CapitaLand’s Chief Executive Officer Lee Chee Koon said in the statement. “Geographically, the deal strengthens CapitaLand’s presence in our core markets of Singapore and China, while adding meaningful scale in India, U.S. and Europe.”
The units that CapitaLand is buying are Ascendas Pte. and Singbridge Pte. The developer will pay half of the S$6 billion in cash and the remainder in new shares, which will be priced at S$3.50 apiece, the company said. That will increase Temasek’s stake in CapitaLand to about 51 percent from some 40.8 percent, it said.
(Adds comment from analyst in fourth paragraph.)
To contact the reporters on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net;Pooja Thakur in Singapore at pthakur@bloomberg.net
To contact the editors responsible for this story: Katrina Nicholas at knicholas2@bloomberg.net, Paul Panckhurst, Joyce Koh
©2019 Bloomberg L.P.