CDL Gears Up For New Phase Of Growth In Singapore
CDL Gears Up; firmly focused on driving value in its core property development business in Singapore and upcoming asset enhancements. CDL provided an update on its Singapore residential strategy and upcoming asset enhancements at a media briefing on March 25, ahead of the start of previews for its newest development, Irwell Hill Residences. This story is based on news articles that appeared in The Business Times and EdgeProp.
City Developments Limited (CDL) is dead set on growing the value of its core Singapore property development business. CDL announced at a press conference that it would replenish its land bank through an active land banking strategy in order to maintain a stable launch pipeline. “Our projects have sold well in recent years,” CDL Group General Manager Mr Chia Ngiang Hong explained, “so we need to maintain an optimal level of land supply.”
CDL will concentrate on land tenders, specifically government land sites (GLS) and collective sale sites, as well as larger-scale developments such as entire precincts or districts. Given CDL’s track record of winning tenders under the two-envelope system, Mr Chia expressed confidence in the Group’s chances of securing master-development projects. In the long run, this would provide CDL with a good land bank.
According to Mr Chia, CDL will also revitalize assets in order to unlock value. Fuji Xerox Towers on Anson Road, for example, will be redeveloped into a 47-story freehold mixed-use integrated development from a 38-story office building. The new structure will include office, retail, residential, and serviced apartments. The Central Business District Incentive Scheme has the potential to increase Gross Floor Area by 25%, to approximately 655,000 sq ft.
The seven-story Central Mall on Havelock Road is also under construction. Under the Strategic Development Incentive Scheme, CDL intends to redevelop it into a mixed-use development with office, retail, serviced apartments, and a hotel. “We will see a significant increase in GFA, and we are considering doing commercial-use, hotel, and serviced apartments,” Mr Chia said.
He added that the strategy is not new, but CDL has been implementing it for some time. The former Boulevard Hotel on Orchard Boulevard, for example, was redeveloped by CDL into Boulevard 88, a freehold 154-unit luxury condominium, and The Singapore EDITION Hotel. One Shenton, a mixed-use development with 352 units, was built on the site of the former Robina House office building on Shenton Way. Mr Chia estimates that CDL contributes about 8% to 12% of new home sales each year, or 1,000 units. In 2020, CDL sold 1,318 units ranging from executive condos to high-end luxury projects.
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