CityDev

CityDev: Together with U.S based investment firm have acquired, via an SPV, a prime freehold site in Tokyo for ¥30.5b from Seiko. The 16,815 sqm parcel of land is located in the high-end, prestigious residential enclave of the Shirokane area in Tokyo’s Minato ward where foreign embassies and offices are situated. CityDev says there is potential develop an iconic high-end condominium whilst preserving a former landed residence For now, MS thinks this news development is neutral, as limited info prohibits a meaningful revaluation of earnings stream/ RNAV. Additionally, it is unclear how much of a premium the market will be prepared to pay for the planned 20-30% residential development margins it is targeting outside of Singapore home market, where CDL has less scale and brand power. MS has an Equal-weight rating on CDL with TP of $9.20