CDL share price to hit $10 with UK S-REIT IPO?
SIGN UP FOR $10 TO UNLOCK ALL ARTICLES! It’s like an intriguing plot straight out of Hong Kong’s TVB drama. The unfolding Sincere Property saga has rocked Singapore’s leading property giant, City Developments Limited (CDL), which announced an impairment loss of $1.78 billion due to investments in the Chinese property developer. The impairment contributed to the Group’s worst full-year financial performance in its operating history. Arising from this crisis, investors must be sweating on the kind of collateral damages that would be inflicted on CDL share price.
Investors first smelled blood for CDL share price in October 2020 when former director Kwek Leng Peck resigned after purported disagreements with the board over the Sincere investments. Consequently, the market reacted violently over Mr Kwek’s resignation, sending CDL share price spiralling out of control.
Following Mr Kwek’s resignation in October 2020, CDL share price fell from $7.70 to a low of $6.20. The correction represented almost 20% of CDL share price, so you can imagine the kind of seismic impact that Mr Kwek’s resignation inflicted on CDL share price. Since his departure, two more directors resigned over the fallout from the Sincere saga.
In retrospect, …