Overseas deals will boost growth.

GuocoLand’s FY16 earnings will get a sharp boost from sizeable divestment gains, according to a report by CIMB.

CIMB said that GuocoLand is expected to book in a $58m profit from the sale of a 33,297sqm office block in Shanghai Guoson Centre, as well as $480m net gain from the sale of its 90% stake in the Beijing Dongzhimen development.

Apart from these divestments in China, its Malaysian subsidiary had also recently announced plans to sell one office tower in Damansara City in KL for RM189m.

These gains will reduce GuocoLand’s gearing, which currently stands at 1.57x.

“The sale of the Beijing Dongzhimen development has enabled the group to improve its balance sheet strength as well as actualise its RNAV. Potential catalysts could emerge when it recycles its capital into new developments,” CIMB said.

More From Singapore Business Review

• It will take over 12 years to clear Singapore’s massive private home backlog: analysts
  

• What’s the secret behind High Park Residences’ extremely strong sales?
  

• Garena’s new office is so awesome that it will make you ask if that’s even a place for work