SINGAPORE (Dec 16): CIMB is keeping its “add” call and raising its target price for City Developments Ltd (CDL) from $10.47 to $10.50 following the property giant’s second profit participation securities (PPS) deal announced yesterday.

CDL will be teaming up with Keppel unit Alpha Investment Partners to set up a joint investment platform to buy three of CIT’s office assets, Central Mall (office tower), 7 & 9 Tampines Grande and Manulife Centre, for $1,071.5 million.

CDL will hold a 40% share in this venture with Alpha owning the remaining 60%. This venture will have $750.1 million of senior debt facilities and $333.5 million in PPS.

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