City Dev: Credit Suisse keeps at Outperform, raises target price to $17.16, highlighting commercial properties esp older properties due for a industry-wide re-rating after recent landmark transaction of Marina Bay Financial Centre at $2,450ps marked the highest capital value achieved since early 2008 peak. Cites CDL as key beneficiary of trend as one of largest commercial landlords with over 5m sf of net lettable area. Estimates 52% of NLA in core downtown, 20% in CBD fringe, 13% at Orchard.
Adds hotels still buoyant, Spore residential, which makes up 37% of its RNAV, should remain positive as strong economy & low interest rates should offset any policy impact. Next resistance seen at $15.00 with support at $12.95.
Riding on this, attention may shift to other related office plays such as on UIC, OUE, SingLand, Suntec & HKLand.
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