Will CDL's capital recycling reach its $5b target by 2018?

The group has now over $3.5b funds over management.

Analysts are optimistic about City Developments Ltd.'s plan to achieve $5b target by end 2018.

According to OCBC Investment Research, the group has now over $3.5b in funds over management.

"We expect management to continue their capital recycling in 2017-18, which will allow them to achieve their $5b target by end 2018," the brokerage firm noted.

OCBC noted this wouldn't be possible, given its strong footprint in Singapore, where the group has sold 1,017 residential units, including ECs, over the past year with a total sales value of $1.25b.

"Sixty-four percent, 56 units, of Phase 1 at Gramercy Park has been sold, and the 2nd phase will be launched in 1H17. The group also looks to launch the 124-unit New Futura in 2H17, subject to market conditions," it said.

It also mentioned that the South Beach project obtained final TOP in December with the office and retail space fully leased and the 634-room JW Marriot Hotel component soft-opened.

Meanwhile, in China, the Hong Leong City Center in Suzhou put up some firm sales numbers and 1,038 out of the 1,374 Phase 1 units has been sold. In the UK, CDL has also received full planning for the 220-unit Teddington Riverside project, with Block A (57 units) to be launched in 2Q17.