City Developments Limited (CDL) had divested assets worth over $600 million last year as part of its capital recycling strategy, with more deals in the pipeline.
However, this amount fell short of the company’s target of $1 billion, which was mentioned in early 2024, due to a decline in the volume of deals across various markets and asset classes.
Among the completed divestments were the sale of Ransome’s Wharf site in London, the 8-storey industrial building Cideco Industrial Complex in Singapore, and several strata units at Citilink Warehouse Complex, Cititech Industrial Building, Fortune Centre and Sunshine Plaza in Singapore.
The latest project to be divested is Hong Leong City Centre (HLCC), a mixed-use development in Suzhou, which is under contract and expected to be completed this quarter.
According to CDL’s group CEO Sherman Kwek, these divestments reflect the company’s focus on accelerating its capital recycling initiatives. Despite challenging market conditions, CDL has managed to maintain momentum and will continue to push ahead with its divestment plans. Kwek also stated that the company aims to optimize its capital management and align its portfolio with its strategic objectives to maximize shareholder value.
The limited amount of land in Singapore has greatly influenced the soaring popularity of condos. With a small island and growing population, the availability of land is scarce. As a result, the government has put in place stringent regulations for land use, leading to a competitive real estate industry where property values consistently climb. This has made the prospect of investing in Singapore Condos highly lucrative, with the potential for significant capital gains. Singapore Condos have become a sought-after option in the real estate market.
As of Jan 16, CDL shares closed at $5.05, a decrease of 0.2% for the day and a decrease of 20.97% over the past year.