City Developments - Clinical Exit from Sincere Property Investment

Forensic Analyst

Jason Yap, CFA

Forensic Accounting

<p><a href="https://www.smartkarma.com/entities/city-developments-ltd" target="_blank" data-smartkarma-citation="entities:57:1" rel="noopener">City Developments (CIT SP)</a> wrote off a majority of its investments in Sincere Property and had pledged to “<em>ring-fence</em>” its financial exposures.  While it has taken decisive steps to stem the bleeding from the beleaguered China unit, the situation remains complex and highly fluid.  This article sets out a preliminary assessment of CDL's stated exposures compared to true underlying risks, key transactions and partner backgrounds, an outline of China's bankruptcy proceedings, and an indicative roadmap for a broader recovery. </p>

City Developments (CIT SP) wrote off a majority of its investments in Sincere Property and had pledged to “ring-fence” its financial exposures.  While it has taken decisive steps to stem the bleeding from the beleaguered China unit, the situation remains complex and highly fluid.  This article sets out a preliminary assessment of CDL's stated exposures compared to true underlying risks, key transactions and partner backgrounds, an outline of China's bankruptcy proceedings, and an indicative roadmap for a broader recovery. 

CDL - Remedies for a Beleaguered Chinese Investment and Belligerent JV Partner