CapitaLand China Trust (CLCT) (SGX:AU8U) used to focused on retail properties and malls in China but has expanded its mandate to include other property types in early 2021.
And the management has moved fast to acquire 4 logistics properties located in
Why does CLCT want to expand into logistics properties?
In our previous analysis of CLCT, we mentioned that one of the risks is the rising trend of e-commerce which can become a threat to the malls,
eMarketer has also reported that in 2021, bricks-and-mortar sales would likely fall by 9.8%, after an 18.6% drop last year.
If this trend continues, CLCT having majority of its portfolio concentrate in retail malls will surely be affected and is definitely something CLCT investors should look out for.
This could be one of the reasons why CLCT has decided to expand its investment portfolio to other assets classes instead of relying solely on retail.