…along with other top picks like UOL and Capitaland

Malaysians may be familiar with big local property players like Eco World, Mah Sing, Sunway and the like, but over the Causeway, one developer is a firm crowd favourite in terms of shares. For those who can’t afford to own multiple properties (because let’s be honest, even owning one can be a problem), one of the best solutions is property shares – and of course, REITs.

According to a report by The Edge, CIMB Securities and Credit Suisse recommend City Development Limited (CDL) as their top developer pick of the sector. (Aside from CDL, CIMB has also named UOL and Capitaland as its top “add” picks.) CIMB is highlighting CDL for its active capital recycling, low gearing and expectations of its Chinese and UK contributions to ramp up in the second half of 2016. Credit Suisse, on the other hand, expects the developer to go through further asset monetisations to be the next catalyst and thinks its current valuations are attractive.

Both research houses are looking at target prices between S$8.75 and S$11.50, as Singapore’s property sector registered a 49% improvement in sales transaction volume for the month of Sept compared to a year ago (with the exception of executive condominium sales). Analysts are expecting positive sales for the next two months, particularly CDL’s Forest Woods, along with MCC Land’s The Alps Residences and the soon-to-launch EL Development’s Parc Riviera.

Artist's impression of CDL's Forest Woods project (Source: CDL)

Artist’s impression of CDL’s Forest Woods project (Source: CDL)

City Developments Limited (CDL) is a Singapore-based property and hotel conglomerate, involved in real estate development, hotel ownership and investment as well as facilities management and hospitality solutions. Founded in 1963, the CDL network spans 80 locations throughout Asia, Europe, the Middle East, North America, New Zealand and Australia. Additionally it has a wholly owned subsidiary in China – CDL China Limited.

City Developments is also one of Singapore’s biggest landlords, letting over 7.8m square feet of office, industrial, retail, residential and hotel space. Its projects include Tanglin and Queensway Shopping Centres, City Square Mall, The Residences at W Singapore – Sentosa Cove, The Rainforest executive condominium and one of Singapore’s tallest buildings – Republic Plaza. It also owns the London-listed subsidiary Millennium & Copthorne Hotels, managing over 100 hotels globally.

cdl-building-with-logo

Here are 5 things you may not know about CDL:

  1. City Developments Limited is South East Asia’s second largest property developer.
  2. It was the first Singapore company to be listed on all three of the world’s top sustainability benchmarjs – the FTSE4 Good Index Series, the Global 100 Most Sustainable Corporations in the World Index and the Dow Jones Sustainability Index.
  3. CDL Chairman Kwek Leng Beng’s father left China as a penniless teenager and founded the Hong Leong Group in Singapore.
  4. Kwek Leng Beng started out running the Copthorne King’s hotel on Havelock Road. The land cost S$980,000 in 1968, but it is now estimated to be worth S$30mil today, and remains the chairman’s favourite hotel.
  5. Kwek Leng Beng once jointly bought New York’s iconic Plaza Hotel from Donald Trump. In 1995, he and Saudi billionaire Prince Alwaleed acquired the hotel in a complex transaction that valued it at US$325m; about US$75m less than Donald Trump had paid in 1988. They subsequently sold it in 2004, for US$675m.
Copthorne King’s Hotel, Singapore (Photo from Millenium Hotels)

Copthorne King’s Hotel, Singapore (Photo from Millenium Hotels)

So there you go. What are some of your favourite developers or projects in Singapore? Find them on www.estate123.sg now, or download the Estate123 Singapore mobile app to search and list properties even while on the go!

Source
The Edge
The Motley Fool