CDL to launch third PPS this year

Singapore

CITY Developments Limited (CDL) is looking to launch a third profit participation securities (PPS) structure this year, as this innovative financial vehicle becomes a "permanent feature" of its fund-management strategy.

The group also announced on Thursday that it was on track to achieve its target of S$5 billion in assets under management (AUM) by 2018.

CDL has not decided on which assets - in terms of location or sectors - will be monetised under the third PPS, but group chief executive Grant Kelley signalled that these are likely to be local assets, given that many of CDL's overseas assets, excluding completed hotels, are still in development stage.

"For the moment, CDL has a sufficient pool of local assets to explore," he told The Business Times. "For overseas assets, we also need to consider specific legal, tax and regulatory issues…