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Financials

UPDATE 1-Shares in Singapore's CapitaLand surge on restructuring plan

* Shares touch S$4.01, their highest since Feb 2013

* Property development business to be taken private

* Investment management ops, REITs to be in listed entity (Adds analyst comment, updates shares)

SINGAPORE, March 23 (Reuters) - Shares of Singapore’s largest developer CapitaLand soared in morning trade on Tuesday after the company unveiled a major restructuring plan aimed at fetching higher valuations for its real estate investment business.

The stock was trading at S$3.78 in late morning, up 14.2% but below the S$4.102 level that CapitaLand said was the implied consideration of the deal which will see its real estate investment management business become a new listed entity and its property development business taken private.

Shares of CapitaLand, which is 52% owned by Singapore state investor Temasek, earlier rose as high as S$4.01 - their highest level since February 2013.

The new listed company, CapitaLand Investment Management (CLIM), will house its stakes in its real estate investment trusts, funds as well as its lodging business.

“We like the transaction as it sharpens the group’s focus and positions it as an asset-light and capital efficient business through CLIM as well as unlocks value for investors through the scheme,” CGS-CIMB analyst Lock Mun Yee said in a research report.

She maintained her “buy” rating on the stock, and raised its target price to S$4.04 from S$3.42. (Reporting by Aradhana Aravindan in Singapore; Editing by Edwina Gibbs)

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