With this, he has kept his “neutral” call on the stock at a higher target price of $4.90 from $4.70.
Analysts have a positive view of City Developments’ (CDL) proposed sale of its 50.1% stake in its South Beach asset for $2.75 billion to the group’s joint-venture (JV) partner, IOI Properties Group.
RHB Bank Singapore’s Vijay Natarajan notes that the proposed sale is a positive step for the company in addressing its ballooning debt and crystallising unitholder value. However, further capital recycling, especially for its low-yielding overseas assets, is needed to improve return on equity (ROE).
