Asset recycling is CityDev's weapon of choice as property prices tumble

Experts are upbeat on its PPS scheme.

With residential sales stuck in the doldrums and asset prices on a steady decline, City Developments has turned to a crafty asset recycling program in order to fuel growth and drive returns.

Analysts at DBS believe that CDL’s Profit Participation Securities (PPS) scheme has a myriad of positives for the property developer, as illustrated by its new JV with Keppel Land subsidiary Alpha Investment Partners.

Under the JV, a joint investment platform by the two entities will acquire a portfolio of three of CDL’s prime office properties worth $1.1bn.

“We believe that this platform will enable CDL to better time its exit and obtain a fairer price for these properties in the medium term post the current downturn of the office market in Singapore. In the meantime, the JV will work towards optimising portfolio performance in the medium term, which should result in higher valuations,” said DBS.

The deal will also allow CDL to tap third party capital and redeploy cash into other sources, DBS said.

“Supported by a strong balance sheet and diversified earnings base, CDL should be able to weather the current uncertain market conditions well,” said the report.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

The partnerships aim to improve care delivery and patient outcomes.
The KoolLogix cooling system for data centres uses passive heat extraction and removal.
This is the first-of-its-kind collaboration between an index provider and an airport group.
The new initiative is targeted towards offering greater savings and flexibility.
Mapletree Logistics Trust was seen with the most growth.
Flexibility, specificity, and customer-centred approaches prove to be the edge in today’s enterprise application software companies.
The list is from Investigoal, which gave Singapore a score of 8. 
It won't push through with the acquisition of the majority of stake in a Vietnam property firm.
DBS Country Head Shee Tse Koon has apologised for the disruptions.
Only two in five Singaporean internet users are aware of NFTs.
October postings were up by 76% from February 2021.
Three of the four initiatives were spearheaded by Enterprise Singapore.
The agreement comprises two payments.
MTI cited four downside risks that will affect the economy's growth next year.