City Developments' Capital-Recycling Strategy Likely in Focus

Dow Jones
08/19

0610 GMT - City Developments' capital-recycling strategy is likely to be closely watched by investors, as they await the outcome of the Singapore property company's strategic review due end-September, says OCBC Group Research's Andy Wong in a note. The company's divestment activity has been modest year-to-date, but CDL has indicated that several asset sales are in advanced negotiations with deals likely over 2H and 2027, the analyst says. He expects the legacy U.K. development landbank worth around 800 million Singapore dollars to be a key monetization candidate. However, asset disposals in the U.K. remain challenging amid interest-rate outlook uncertainties, he notes. OCBC raises its rating to buy from hold but cuts its fair-value estimate to S$10.35 from S$10.40. Shares rise 0.1% to S$8.11.

 

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