SINGAPORE (Dec 16): OCBC is maintaining its “hold” view on City Developments with an unchanged fair value estimate of $8.35 after the developer announces that it will sell three of its prime office properties in Singapore to a joint venture fund with Alpha Investment Partners.

“We like that City Developments continues to monetise its non-core assets and strengthen its balance sheet effectively in a slowing market...That said, we remain cognizant of the headwinds in the group’s core domestic development segment and see challenging conditions going forward,” OCBC says.

City Developments said Tuesday evening that the joint investment firm will be 60% co-financed by Alpha and the rest by City Developments, and will buy the three properties for $1.1 billion.

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