SINGAPORE (Dec 18): UOB KayHian has raised its 2015 net profit forecasts for City Developments (CDL) by 43%, following the group’s announcement of a second profit participating security (PPS) transaction worth $1.07 billion.

This is to factor in the one-off contribution from the divestment of three office assets, which will be securitised under the PPS, it says.

CDL on Tuesday announced a 60:40 joint venture (JV) with Alpha Investment Partners to invest in the PPS. The JV will receive a fixed payout of 5% per annum over a period of five years in addition to participation in asset divestment.

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