CDL in pole position for Leighton Properties

Singapore's City Developments Limited is believed to be closing in on the acquisition of Leighton Properties' residential division, sources said.

The Australian Financial Review revealed in February the Spanish company that controls Leighton had launched a fresh sales process for Leighton Properties through its advisers Bank of America Merrill Lynch.

The decision followed the collapse of negotiations with Stockland and CDL late last year to buy the entire business.

However, it's understood CDL has been lured back into the auction and may be willing to pay about $400 million for the lucrative residential arm. A deal is expected to be wrapped up within four weeks.

Street Talk can also reveal Leighton Properties will now hold off on the sale of the commercial projects - which Charter Hall Group has been eyeing off - until the residential sale has completed.

Leighton Properties' residential developments include ERKO at Erskineville with over 300 apartments and AQUA, a 129-unit tower at Bondi Junction in Sydney. The crown jewel though is a twin tower project planned in St Leonards on Sydney's north shore.