City Developments Limited (CDL) is closing out 2025 with a familiar (and increasingly market-moving) storyline: sell mature assets at punchy prices, recycle capital, and try to narrow the persistent “holding-company discount” that often follows big, asset-heavy developers.
As of Dec 20, 2025 (a Saturday, with Singapore markets closed), CDL shares last closed at S$7.98 on Dec 19, up 4.04% on the day and trading near the top of their 52-week range of S$4.32 to S$8.03, according to Investing.com’s data for the counter. [1]
What changed recently isn’t just the price — it’s the pace of corporate actions and the tone of broker commentary. CDL has put multiple big-ticket transactions on the table heading into year-end, and analysts have become far more animated about potential catalysts in 2026, including divestment completions and the possibility of capital returns.
The headline move: CDL sells Quayside Isle @ Sentosa Cove at a big premium
The most current catalyst is CDL’s agreement to divest Quayside Isle @ Sentosa Cove for S$97.3 million, a price CDL says is about S$2,205 per square foot and roughly 47% above the asset’s book value (S$66.0 million). CDL expects the transaction to complete in Q1 2026. [2]
That premium matters because it’s effectively a public “mark” on the value of a trophy, income-producing asset — the kind of evidence investors look for when they suspect a developer’s balance sheet may be undervalued.
The Business Times also reported that the buyer is understood to be an entity owned by Patrick Kho, and quoted CDL CEO Sherman Kwek highlighting that the deal represents an exit at a 2.6% cap rate (a low cap rate typically implies a high valuation, assuming the income stream is stable). [3]
CDL itself framed the Quayside Isle deal as part of a broader portfolio optimisation push, describing it as the group’s eighth asset divestment contracted in 2025. [4]
Another December pivot: CDL expands in Central London with a £280 million hotel acquisition
Just two weeks earlier, CDL announced it had completed the acquisition of the 706-room Holiday Inn London – Kensington High Street for £280 million through Millennium & Copthorne Hotels (M&C), CDL’s hotel arm. CDL positioned the asset as a rare, large-scale freehold hotel in a prime London submarket and said the deal should strengthen its Central London footprint. [5]
CDL provided several operating datapoints that help investors judge whether this is an empire-building purchase or a disciplined yield play:
- Occupancy above 97% for the nine months ended Sept 2025
- Revenue exceeding £39 million in the preceding 12 months
- Expected yield above 6% (based on the purchase price) [6]
The company also explicitly tied the strategy to macro conditions, pointing to a stabilising environment and the prospect of easing rates in the UK. [7]
CDL’s 2025 playbook: capital recycling at scale
If Quayside Isle was the year-end punctuation mark, 2025’s core narrative has been the sequence of divestments — including major disposals, smaller “tidy-up” exits, and selective reinvestment.
South Beach: the “big one” that reshaped 2025 expectations
CDL and IOI Properties Group announced a landmark deal in June under which IOI would acquire CDL’s 50.1% interest in South Beach, based on an agreed property value of S$2.75 billion (100% basis). CDL said this represented about a 3% premium over the latest valuation as at Dec 31, 2024. [8]
CDL’s own operational update later confirmed that divestment proceeds from the disposal of 50.1% in Scottsdale (the South Beach vehicle) helped offset some balance-sheet pressures, and stated the disposal was completed on 1 Sept 2025. [9]
Piccadilly Galleria: smaller asset, clear pricing signal
In its Q3 operational update, CDL stated it launched the sale of Piccadilly Galleria in September 2025 and completed the divestment on Nov 7 for S$65.46 million, translating to about S$3,250 psf. [10]
EdgeProp also reported the Nov 7 completion and sale value. [11]
US multifamily sale: reducing gearing, redeploying capital
CDL announced that M&C divested “1250 Lakeside” in Sunnyvale, California for US$143.5 million, following a sale process marketed by Colliers USA, and framed the move as part of capital recycling. [12]
Japan hotel sale: JPY 14 billion deal slated to complete in December
CDL also agreed to divest Bespoke Hotel Osaka Shinsaibashi for JPY 14 billion, and The Business Times reported the buyer as funds managed by Blackstone, with completion expected within December 2025. The report also noted CDL acquired the asset in Aug 2023 for JPY 8.5 billion. [13]
How big is the whole recycling effort?
In its London hotel acquisition announcement, CDL said that as at that point in 2025 it had achieved approximately S$1.9 billion in total contracted divestments, with approximately S$1.7 billion in acquisitions, including three Government Land Sales (GLS) sites plus the London hotel. [14]
With Quayside Isle (S$97.3 million) added afterward, year-to-date contracted divestments edge closer to the psychologically neat “~S$2 billion” level frequently referenced in market coverage. [15]
What CDL said about operating performance: sales, occupancy, hotels, and leverage
Beyond deals, CDL’s most important recent fundamental read is its Operational Update for the quarter ended 30 September 2025 (released Nov 17).
Property development: fewer launches, but stronger year-to-date sales value
CDL reported that in Q3 2025 it sold 88 units in Singapore (group + JV associates) with sales value of S$313.2 million, lower than the year-ago quarter that benefited from new launches. [16]
For the first nine months of 2025, CDL reported 990 units sold totaling S$2.5 billion in sales value (vs. 905 units / S$1.8 billion a year earlier). [17]
The update also highlighted strong take-up for key projects:
- The Orie (Toa Payoh): 730 units sold (94%) to date [18]
- Zyon Grand: launch-weekend sales of 590 units (84%) at an average selling price of S$3,050 psf [19]
Investment properties: high occupancy in Singapore, mixed signals elsewhere
CDL reported committed occupancy as at Sept 30, 2025 of:
- 97.3% for its Singapore office portfolio
- 96.9% for its Singapore retail portfolio [20]
It also disclosed about 52% pre-commitment for Union Square Central (Grade A office component of a major redevelopment project), years ahead of completion. [21]
But there were softer points too, including CDL’s China office portfolio committed occupancy of 58%, reflecting continued weakness in that market. [22]
Hotels: broadly stable, but Singapore softened off a high base
For 9M 2025, CDL reported a slight decline in global RevPAR (revenue per available room) to $165.8, driven by weaker performance in Asia. [23]
In Singapore, CDL attributed a 10.6% y-o-y decline in RevPAR partly to high base effects from major events in 2024 and the shift in timing of the Singapore F1 Grand Prix. [24]
Balance sheet: net gearing still elevated
A key investor sensitivity is leverage. CDL reported that as at Sept 30, 2025:
- Net gearing ratio: 69%
- Interest cover: 4.0 times
- Cash reserves: S$2.5 billion
- Liquidity position supported by S$4.3 billion in cash + undrawn committed facilities [25]
This is the “tension point” in the story: CDL is selling assets and buying assets, while working to keep leverage controlled.
Analyst forecasts on CDL stock: targets range from cautious to euphoric
The most striking shift into late 2025 is the widening spread in target prices — reflecting genuine disagreement about how quickly CDL can translate asset sales into a sustained re-rating and/or shareholder returns.
The bullish end: DBS lifts CDL target price to S$11.80
On Dec 11, The Business Times reported that DBS Research raised CDL’s target price to S$11.80 (from S$9.00) and maintained a “buy” call, citing a lower interest rate environment and developers’ intentions to accelerate capital recycling and asset rejuvenation. [26]
DBS also pointed to CDL’s pace of divestments in 2025 and raised the possibility that a special dividend could be “on the cards” given the gain profile from disposals such as South Beach. [27]
More conservative “buy” cases: RHB and others focus on recycling + rates
In November, The Edge reported RHB upgraded CDL to “buy” and raised its target price to S$8.50 from S$4.90, pointing to residential strength and ongoing divestments; the same report also flagged that governance concerns had eased versus early 2025. [28]
Special dividend math: JP Morgan flags payout potential
JP Morgan’s view (also via The Edge) leaned into two themes: rate sensitivity and distributions. The note highlighted that CDL could be a beneficiary of rate cuts given its floating-rate exposure, and discussed special-dividend potential linked to disposal gains. JP Morgan also raised its target price to S$8.20 in that report. [29]
The “yes, but…” camp: leverage and governance still matter
Phillip Securities (via POEMS) downgraded CDL from Buy to Accumulate with an RNAV-based target price of S$8.34, while still pointing to divestment momentum and the likelihood that proceeds could support a special dividend at FY2025 results. [30]
And in broker commentary cited by The Edge, OCBC held a more cautious stance, linking its view to gearing levels and monitoring governance. [31]
What consensus looks like as of Dec 20
Aggregated snapshots cluster closer to the high-S$8s than the S$11–12 bull case:
- Growbeansprout shows a consensus target of S$8.655 as of Dec 20, 2025, implying ~8.5% upside from S$7.98. [32]
- Investing.com lists an average 12‑month target near S$8.41, with a high estimate of S$11.8 and low estimate of S$5.3. [33]
Forecasts are not promises, but the direction of travel is clear: after a volatile 2025, more analysts are willing to underwrite a re-rating — provided divestments translate into balance-sheet improvement and/or shareholder returns.
The governance backdrop: early-2025 drama, late-2025 pragmatism
Any CDL stock discussion in 2025 needs one uncomfortable paragraph about the Kwek family boardroom conflict — because markets hate uncertainty more than they hate bad news.
In February 2025, The Business Times reported analysts downgrading CDL and cutting targets amid the boardroom tussle, arguing it could overhang the share price and create uncertainty around strategy. [34]
In March 2025, Reuters reported the chairman dropped the lawsuit against his son and CEO Sherman Kwek, and board changes followed — a move widely seen as reducing a major governance overhang. [35]
The more constructive tone of late-2025 broker notes makes a lot more sense in that context: the market is refocusing on execution (asset sales, launches, debt management), not courtroom chess.
What to watch next for CDL shares in 2026
With CDL ending 2025 near a 52-week high, the next leg depends less on headlines and more on follow-through. The key watch items are:
1) Completion of announced divestments and what CDL does with the cash
Quayside Isle is expected to complete in Q1 2026. The question investors will track is whether proceeds predominantly go to debt reduction, new acquisitions, or shareholder returns. [36]
2) The FY2025 results window
Investing.com lists CDL’s next earnings report date as Feb 25, 2026. That’s a natural moment for management to clarify capital allocation priorities and dividend posture. [37]
3) Special dividend and/or buyback optionality
DBS explicitly raised special dividend expectations in its Dec 11 sector note. [38]
JP Morgan discussed special dividend math tied to disposal gains and noted CDL has a buyback mandate in place (though buybacks had not yet commenced at the time of that report). [39]
4) Leverage and refinancing sensitivity
CDL’s reported 69% net gearing is workable if asset sales keep arriving — but it also means investors will remain extremely sensitive to rate moves and refinancing conditions. [40]
Risks that still apply (even in a better headline cycle)
CDL’s late-2025 momentum doesn’t remove the classic risks attached to global property and hospitality groups:
- Higher-for-longer rates or renewed volatility could pressure earnings and valuations, particularly with meaningful floating-rate exposure highlighted in broker commentary. [41]
- Execution risk: asset recycling works only if disposals continue at attractive prices and redeployment doesn’t dilute returns. [42]
- Regional weakness: CDL’s operational update showed softness in China office occupancy and highlighted mixed hotel performance by geography. [43]
- Governance perception: while the worst of 2025’s public feud appears resolved, investor trust tends to return slowly and leave quickly. [44]
Bottom line: CDL stock is being priced like a re-rating story — now it has to prove it
By Dec 20, 2025, CDL has stacked up enough transactions to keep the market’s attention: a Sentosa Cove retail sale at a large premium, a major Central London hotel acquisition pitched at a >6% yield, and a broader year of divestments that management says approaches the S$2 billion level. [45]
The stock’s move toward its 52-week high suggests investors are increasingly buying the idea that CDL can convert “hidden” asset value into visible shareholder outcomes. [46]
The next test is simple, brutal, and very financial-markets-coded: does cash from divestments show up as lower gearing, higher recurring returns, and/or direct distributions? If 2025 was the year CDL re-accelerated capital recycling, 2026 is shaping up as the year investors demand receipts.
References
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