What would it take for prices to move higher? Since the announcement on July 15 that Philip Yeo, an independent director, was stepping down, CDL’s share price has risen by 28%. This compares with a 9% gain from the start of the year ($5.11) to July 15 ($5.57).
Part of the reason is likely to be the continuation of CDL’s monetisation programme. On Nov 25, CDL announced the divestment of Bespoke Hotel Osaka Shinsaibashi in Japan for JPY14 billion ($117 million) or JPY54.7 million ($457,000 per key) to Blackstone. The proposed divestment is scheduled to be completed by December. The 256-room freehold hotel opened in 2019, and CDL acquired the property in August 2023 for JPY8.5 billion, or JPY33.2 million per key. The divestment of Bespoke Hotel Osaka Shinsaibashi marks CDL’s fourth major capital recycling transaction this year.
On Nov 20, CDL announced that its subsidiary, Millennium & Copthorne Hotels, had completed the divestment of its multifamily residential asset, 1250 Lakeside, in the US, for US$143.5 million ($186.8 million) to a US-based institutional investor.
The sale price is based on its net lettable area of 201,750 sq ft. The property was launched for sale in May via an Expression of Interest (EOI) marketed by Colliers USA, which attracted strong interest from local property companies and REITs. Following a competitive process that closed in July 2025, the group entered into the transaction with the buyer in October at US$143.5 million.
CDL said it had completed the divestment of Piccadilly Galleria on Nov 7, for $65.46 million, translating to about $3,250 psf. The group also launched Quayside Isle for sale through an exclusive Expression of Interest (EOI) exercise in September, and it has attracted encouraging market interest.
“Following the close of the EOI on Oct 15, the group is now in advanced stages of discussion and negotiation with shortlisted parties. These divestments are in line with the Group’s ongoing strategy to prioritise capital recycling by unlocking value and redeploying the sales proceeds into new opportunities, debt reduction and enhanced shareholder returns,” CDL said on Nov 17.
“This sustained asset monetisation follows on from the earlier disposal of a 50.1% stake in South Beach for a sale consideration of $834.2 million, with a $465 million disposal gain and the recently announced divestment of Piccadilly Galleria for $65.46 million. Including Quayside Isle in Sentosa, with a reported asking price of $111 million and for which CDL is in advanced sale discussions, CDL has achieved close to $1.9 billion worth of non-core divestments,” notes a JP Morgan report dated Nov 20.
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JP Morgan has a December 2026 price target of $8.20 based on a 35% discount to its revalued NAV estimate of $12.65 per share.
“The 35% discount is slightly below the 0.5 standard deviations discount of 31%, as CDL has made significant progress in selling non-core assets to help close the discount to book, but return on equities are still suboptimal,” JP Morgan reasons.
The icing on the cake would be the sale of the former Stag Brewery site in Mortlake, Shoreditch House in London and Teddington.
“We see prospects of continued sales momentum with Shoreditch House in London on the market for GBP110 million ($187 million), and the potential sale of its UK land bank, such as the former Stag Brewery site in Mortlake, South West London, which received planning approval earlier this year and which CDL had acquired for GBP158 million in 2015. We believe investors will react positively to this sustained sales momentum with divestments outpacing investments and a progressive reduction in gearing,” JP Morgan said in reaction to further investment property sales
