City Developments - RHB Invest 2015-12-11: Re-enters the Australia housing market

City Developments - RHB Invest 2015-12-11: Re-enters the Australia housing market CITY DEVELOPMENTS LIMITED C09.SI 

City Developments Limited (CIT SP) - Re-enters the Australia housing market

  • City Developments Limited re-enters the Australia housing market, investing AUD275m (SGD282m) residential project in Brisbane with two other local developers. The development will yield 472 units, sitting on a 29.4k sq ft freehold site. 
  • Recall that CDL has emphasized in diversifying its portfolio two years back, amidst the challenging market in Singapore. 
  • The company also mentioned that it has interest in Brisbane as the residential market in Brisbane remains highly attractive due to its affordability, compared to other major cities in Australia. 
  • We maintained a BUY recommendation with a target price of SGD8.75. CDL’s share price performance has been weak in the recent weeks, and we think that valuation is compelling at this level. 
  • The counter last trade at SGD7.15, equating to a 22.4% upside.



Ivan Looi RHB Invest | Ong Kian Lin RHB Invest | http://www.rhbinvest.com.sg/ 2015-12-11
RHB Invest SGX Stock Analyst Report BUY Maintain BUY 8.75 Same 8.75


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