Kwek adds: “In around September last year, we engaged a global advisory firm to help us do a strategic review of our strategy and operations. We are still in the process. The first step they took was an investor perception audit, in which they reached out to the buy and sell sides to gather feedback on how we are viewed by shareholders, investors and analysts. We want to come up with something that will close this perception gap and allow you to measure us and hold us more accountable for what we say we’re going to do.”
Investors have a choice of two relatively sizeable developers based on their market capitalisation. City Developments (CDL) was valued at around $8.5 billion, while UOL Group’s market capitalisation is $9.28 billion. With their market values closely matched, which developer offers better value to investors?
The answer rests on the investment horizon. During the Feb 27 results briefing, CDL group CEO Sherman Kwek announced plans to divest its legacy UK portfolio, which CDL acquired from 2013 onwards and is valued at about $800 million, and a strategic review. The strategic review should be completed by June.
