Here's why Wheelock's share price falls behind CityDev

Its share price growth is only 24.7% against CityDev’s 41.4%.

Wheelock Properties (Wheelock) is crawling behind City Developments (CityDev) in terms of share price performance, with 24.7% YTD against 41.4%.

According to UOB KayHian, Wheelock also lagged its peers' rate of 27.6%.

However, Wheelock still stands as the only developer with no outstanding debt. It has a net cash position of $447.7m.

Stiff competition from rivals made it tough for the firm to bag acquisitions. It is focusing on the high-end segment.

UOB KayHian analyst Vikrant Pandey said, "Wheelock is well positioned to ride the property upturn as it derives over 80% of its value from Singapore."

Here's more from UOB KayHian:

It is also a beneficiary of the expected privatisation of Global Logistics Properties which has led to strong interest from fund managers in developer names as it could replace the gap in their portfolios.

A key catalyst for Wheelock could come in the form of the joint development of Orchard Road properties with strategic partner HPL (22.6% effective stake).

Wheelock and HPL could buy the URA carpark between Four Seasons Hotel and Wheelock Place and then redevelop the entire stretch spanning Forum, Hilton, Ming Arcade, HPL House, Four Seasons Hotel and URA Carpark into a mixed development maximising the Orchard road frontage and connected to Orchard MRT via Wheelock Place.

Such a mega redevelopment holds potential for over S$1b in value accretion.