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