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City Developments (SGX:C09) is expected to announce more details on its strategic review by 3Q. We expect greater clarity on assets identified (~S$5bn) and timeline for capital recycling, key investment pillars and capital allocation strategies to enhance its flagging ROE.
Key strategic review areas.
- - Read this at SGinvestors.io -
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While recent interest rate volatility could impact the execution timeline, a clearer articulation of asset light strategy and identification of core/non-core assets is a key rerating catalyst.
Rejoining of Kwek Leng Peck as Vice Chairman a positive move.
- - Read this at SGinvestors.io -
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To recap, Leng Peck resigned from the Board in Oct 2020 citing disagreements over City Developments’s investment in Sincere Property Group (which has since been fully written down) as well as reservations over management’s approach of Millennium & Copthorne (M&C) Hotels. We believe his reappointment will strengthen the Board’s rigour and lead to more robust deliberations over the group’s divestment and investment strategy, just as City Developments embarks on value unlocking plans.
CDL’s projects not impacted from recent policy changes
- Read more at SGinvestors.io.
