CityDev braces for greater volatility as overseas expansion plans pick up momentum

It's targeting the UK and Japan.

City Developments is venturing into foreign shores in its bid to buck Singapore's difficult property landscape.

UOB Kay Hian warns that CityDev's aggressive overseas expansion will bring the company greater volatility.

"Management sees continued headwinds in Singapore’s property landscape and
plans to continue its overseas expansion drive, especially in the UK and Japan. Expect continued volatility as the group diversifies away from its home base of Singapore into untested geographies and products," stated UOB Kay Hian.

Here's more from the report: 

Overseas expansion drive focused on the UK and Japan. The group flagged off its venture in Japan with an ambitious flagship 329-room hotel, the Millenium Mitsui Garden Hotel Tokyo situated along Ginza Street No. 4, last year. 

The group also acquired 181,000sf of land in Tokyo’s Minato ward, with plans for a luxury condominium development.

Management reiterated it will look selectively at transactions across major UK centres, particularly in London as there are now more deals coming on-stream in the real estate marketplace, and is looking forward to a positive business environment post the general election.