As such, the team notes that CDL is likely to receive $834.2 million in proceeds, which will allow the group to reduce its gearing and redeploy capital. The proceeds may also result in a special dividend to shareholders, the team suggests.
The team is also positive on the group’s prospects with an increased interest in projects within Singapore’s core central region (CCR). It notes the two new project launches over the weekend of July 19 to 20, the 301-unit UpperHouse at Orchard Boulevard and the 348-unit The Robertson Opus in Clarke Quay.
“The take-up rates surprised us on the upside, as both projects achieved sell-through rates of 54% and 41%, respectively,” the team writes.
“Such healthy interest augurs well for CDL, which is planning to launch its Zion Road (Parcel A) JV project project (Zyon Grand) in 2H2025,” the team adds. Zyon Grand is a mixed-use integrated development in the rest of central region (RCR) with direct connectivity to Havelock MRT.
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CDL also has a luxury project, Newport Residences, at Anson Road. While the timeline was delayed till further notice, the team believes the take-up rates for the CCR projects highlighted earlier would “provide some encouragement” to CDL’s management.
In addition, the operating metrics for Singapore’s retail and office sectors - where CDL has properties in - remain resilient.
Based on data from CBRE Research, core CBD Grade A office rents continued to increase, growing by 0.4% q-o-q to $12.10 per sq ft per month in 2Q2025, or 1.3% up year-to-date from end 2024.
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Meanwhile, prime retail rents islandwide climbed by 0.7% q-o-q to $27.50 per sq ft per month in 2Q2025, which was bolstered by retailer confidence on recovery in tourism and the office catchment crowd.
Amid the positives, the team believes the uncertain global economic outlook and impact of policy tightening measures rolled out previously could be potential dampeners to investor sentiment.
As at 1.01pm, shares in CDL are trading 10 cents higher or 1.61% up at $6.30.
