Which developers will benefit most from KepLand’s $3b buyout deal?

KepLand investors will redeploy capital into these stocks.

Keppel Corp’s $3b privatisation bid for Keppel Land will drive a wave of liquidity towards other listed property developers.

Analysts note that investors are likely to redeploy their money into developers who have similar profiles to KepLand, such as CapitaLand.

According to Nomura, 40% of CapitaLand’s net asset value is represented by China properties, which makes it a good candidate for Keppel Land investors looking to invest developers with similar exposure.

Nomura adds that Wing Tai is another probable candidate, as the privatisation deal provides a valuation benchmark for developers which are still trading at steep discounts to NAVs.  

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