Analysts laud IOI Properties' pick of Central Boulevard co-developer

Kuala Lumpur

IOI PROPERTIES' roping in of Hongkong Land to co-develop Central Boulevard in Singapore has many positives, analysts say, as it would ease its cash flow burden and at the same time enhance the value of the development as direct underground and overhead links can be built to adjoining buildings held and managed by the latter.

A memorandum of agreement was signed on Monday under which HKL's wholly-owned subsidiary Hongkong Land International Holdings (HKLI) would acquire 33 per cent of the joint-venture company for the development of the white site - a development that should prompt a rerating of IOIP since "investors' concerns over its gearing are now removed", RHB Research said in a client note on Tuesday.