CDL to monetise more assets after Sentosa Cove deal

This strategy will boost its ROE.

City Developments is expected to monetise more assets after its recent agreement to monetise its Quayside Collection in Sentosa Cove.

"Following the monetisation of its Quayside Collection assets recently, we believe it will monetise
more of its existing assets. These and overseas earnings could be felt more significantly from FY17 onwards when the China development and other overseas contributions kick in," said CIMB analyst Lock Mun Yee in a report.

She noted that CDL is still in the midst of evolving its business model to include an unlisted funds management business and expand its core development business overseas, in addition to its predominantly Singapore property business.

“For the rest of FY15, we believe it will continue to time its Singapore launches to market and build on its overseas activities and fund management capabilities. We think these strategies would yield positive returns and boost ROE in the medium term,” she said.