City Developments Limited (CDL) has announced that it divested more than $600 million worth of assets last year as part of its capital recycling strategy, with several other deals in the pipeline.
However, the amount fell short of the company’s initial target of $1 billion, which was set in early 2020. This was due to a decrease in the volume of deals across various markets and asset classes.
Some of the completed divestments include the sale of Ransome’s Wharf site in London, the Cideco Industrial Complex in Singapore, and various strata units at Citilink Warehouse Complex, Cititech Industrial Building, Fortune Centre, and Sunshine Plaza in Singapore.
CDL-Frasers Property-Sekisui House have also recently launched The Orie, a mixed-use development in Toa Payoh, with units starting from $1.28 million.
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Another mixed-use development, Hong Leong City Centre in Suzhou, is under contract and is expected to be completed in the first quarter of this year.
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CEO of CDL Sherman Kwek says, “The asset divestments reflect our focus on accelerating our capital recycling initiatives. While market conditions have made divestments challenging, we are glad to have achieved good momentum, and we will continue to push forward with our divestment plans.”
He adds, “We aim to optimize our capital management while holistically calibrating our portfolio to ensure alignment with our strategic objectives and to maximize shareholder value.”
However, despite the divestments, CDL’s shares closed at $5.05 on Jan 16, which was a decrease of 0.2% for the day and a decrease of 20.97% in the past year.
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