(Oct 5): CIMB is maintaining its call for investors to add more City Developments Limited (CDL) shares, following the developer's successful bid for Amber Park with a record price tag of S$906.7 million.

This price level, which works out to S$1,515 per square foot per plot ratio (psf ppr), represents the largest freehold collective sale by dollar value in Singapore to date.

The tender was keenly contested, with CDL and Hong Realty (the private estate arm of Hong Leong Group) bagging the final en bloc sale among eight submissions. CDL will take 80 per cent of the project, while Hong Realty will take the remaining 20 per cent.

Citing its good location and potential for development, CIMB expects the project to be value-accretive. CDL and Hong Realty plan to redevelop the land into a luxurious development comprising of 800 condo units.

Located along the Amber Road enclave in the East Coast area, the site is also close to the beach, notable schools and shopping amenities. Additionally, the upcoming Tanjong Katong MRT station to be completed in 2023 will make the area accessible to public transport and expressways.

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In its research note on Thursday, CIMB highlighted that this transaction would enable CDL to replenish its Singapore land inventory. This tender also reaffirms their optimism over the nascent recovery of the private housing market in Singapore.

That said, the broker noted that downside risks to their call include slower than expected sales at overseas and local development projects.

CIMB valued CDL at a target price of S$12.54, a 9.6 per cent upside compared to the stock's last traded price of S$11.44.