CDL to add zing to its portfolio with redevelopments, divestments

by Albert02

CDL to add zing to its portfolio with redevelopments, divestments

CDL to add zing to its portfolio with redevelopments, divestments. Despite a first-half loss of S$3.1 million, City Developments Ltd (CDL) is looking to revitalize its portfolio by redeveloping some assets. It also intends to divest some of the group’s non-core hotels as well as some of the investment properties held by Sincere Property Group in China. (Only in April did CDL complete the acquisition of an effective 51.01 percent stake in Sincere.) On the fund management front, the group is planning to list a Reit holding UK commercial properties on the Singapore Exchange in the first quarter of next year.

Nonetheless, the group’s top management was upbeat about Singapore’s private housing market during a virtual briefing on Thursday. “We are very encouraged,” said Sherman Kwek, CDL’s group chief executive, “and we see our property development business in Singapore as quite resilient.” “Despite lower sales volumes, we’ve kept inventory moving and pricing relatively stable so far.” In fact, as we begin to move more inventory, we have raised the prices on some of the projects. So I remain optimistic about the residential market in Singapore; it will just take some time to recover.”

Kwek Leng Beng, executive chairman of CDL, emphasized that “a lot of overseas people” are coming into Singapore to buy properties, which he interprets as a “very good sign.” Even during the circuit-breaker partial lockdown, the group sold foreigners units at the upscale Boulevard 88 and South Beach Residences. A joint venture between CDL and Hong Leong Holdings is set to launch Penrose, a 566-unit condo along Sims Drive, in the third quarter of this year.

In the CBD, the group is moving forward with its plans to redevelop Fuji Xerox Towers, a freehold office building, by taking advantage of the Urban Redevelopment Authority’s CBD Incentive Scheme. The plan is to construct a 51-story mixed-use integrated project on the site, with approximately 60% of the gross floor area (GFA) dedicated to residential units for sale and serviced apartments for rent, and the remaining 40% dedicated to commercial purposes, subject to approval from the appropriate authorities. The GFA has the potential to grow by 25% to approximately 655,000 square feet. The provisional permission application is being prepared, and demolition work will begin in the second half of 2021.

In the Singapore River area, CDL is actively exploring the redevelopment of Central Mall, a freehold commercial building with a cluster of adjoining 99-year conservation shophouses, in order to revitalize the area with a proposed mixed-use integrated development that includes office, retail, serviced apartments, and hotel components. Preliminary planning applications for the proposal are being reviewed, which is subject to approval under the URA’s Strategic Development Incentive Scheme. A collaboration with the Far East Organization group’s neighboring Central Square is expected.

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