CDL to add zing to its portfolio with redevelopments, divestments
CDL to add zing to its portfolio with redevelopments, divestments. Despite a S$3.1 million first-half loss, City Developments Ltd (CDL) plans to revitalize its portfolio by redeveloping some assets. It also plans to sell some of the group’s non-core hotels as well as some of Sincere Property Group’s investment properties in China. (CDL only completed the acquisition of an effective 51.01 percent stake in Sincere in April.) In terms of fund management, the group intends to list on the Singapore Exchange a Reit holding UK commercial properties in the first quarter of next year.
Nonetheless, at a virtual briefing on Thursday, the group’s top management was upbeat about Singapore’s private housing market. Sherman Kwek, CDL’s group chief executive, stated, “We are very encouraged, and we see our property development business in Singapore as quite resilient.” “So far, despite lower sales volumes, we’ve kept inventory moving and pricing has remained fairly stable.” In fact, as we begin to shift more inventory, we’ve increased pricing on some of the projects. So I still believe that the outlook for residential in Singapore is favorable; it will just take some time to recover.”
CDL executive chairman Kwek Leng Beng emphasized that “a lot of overseas people” are coming into Singapore to buy properties, which he interprets as a “very good sign.” Despite the partial circuit-breaker lockdown, the group sold foreigners units at the upscale Boulevard 88 and South Beach Residences. Penrose, a 566-unit condo along Sims Drive, will be launched in the third quarter of this year by a joint venture between CDL and Hong Leong Holdings.
The group is moving forward with its plans to redevelop Fuji Xerox Towers, a freehold office building, in the CBD by utilizing the Urban Redevelopment Authority’s CBD Incentive Scheme. The plan is to build a 51-story mixed-use integrated project on the site, with approximately 60% of the gross floor area (GFA) for residential units for sale and serviced apartments for rent, and the remaining 40% for commercial purposes, subject to approval from the relevant authorities. GFA has the potential to increase by 25% to approximately 655,000 square feet. The provisional permission application is being prepared, and demolition-related work is scheduled to begin in the second half of 2021.
CDL is actively exploring the redevelopment of Central Mall, a freehold commercial building with a cluster of adjoining 99-year conservation shophouses, in the Singapore River area, in order to revitalize the area with a proposed mixed-use integrated development that includes office, retail, serviced apartments, and hotel components. The proposal’s preliminary planning applications are being reviewed, and it is subject to approval under the URA’s Strategic Development Incentive Scheme. A collaboration with the neighboring Central Square of the Far East Organization group is expected.
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