CDL said to be selling majority stake in S$2.75 billion South Beach development to IOI partner
[SINGAPORE] City Developments Limited (CDL) agreed to sell its majority stake in one of Singapore's most iconic office complexes, according to a source familiar with the matter, as the developer seeks to reduce debt and regain investor confidence after a family feud.
CDL will sell its 50.1 per cent stake in South Beach to minority owner IOI Properties Group, the source said, requesting not to be identified because the information is private. Malaysian developer IOI will have full ownership following the deal. The deal values the complex at about S$2.75 billion, the source said.
An IOI spokesperson declined to comment. CDL did not immediately respond to an e-mailed query. Shares of CDL rose about 1.6 per cent before a trading halt on Wednesday (Jun 4) morning, pending an announcement.
CDL has been under pressure to sell assets after a feud divided the Kwek family, the wealthiest clan in Singapore. Despite mending relations with his father and chairman Kwek Leng Beng, the firm's chief executive officer Sherman Kwek acknowledged in April that the dispute had hurt shareholders' confidence, and said that reducing the growing debt load is a priority.
The deal will help CDL to meet a pledge to exceed the roughly S$600 million in divestments it made in 2024, which fell short of a S$1 billion target.
The complex in Singapore's central business district includes retail space, a 34-storey office tower, and a 45-storey building housing a JW Marriott Hotel.
A NEWSLETTER FOR YOU
Tuesday, 12 pm Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
Sign Up
Sign Up
The purchase adds to IOI's growing presence in Singapore, with residential developments as well as assets such as IOI Central Boulevard Towers, a newly opened city centre office project. The Malaysia-listed firm is controlled by the Lee family, which made its fortunes from palm oil.
The South Beach development, designed by Norman Foster's architectural firm, has seen ownership changes before. CDL bought the site for nearly S$1.7 billion in 2007 along with two foreign partners, a unit of state-owned Dubai World, and El-Ad Group.
The global financial crisis led to a yearslong delay in construction and the two partners exited the project, with IOI eventually taking a minority stake in 2011. The elder Kwek resisted allowing IOI to take an equal stake in order to maintain control, according to a biography published in 2023.
Major tenant Meta Platforms gave up its seven floors of space at the office tower last year, and occupancy dropped to 92.4 per cent as at the end of March, compared with 94.4 per cent at the end of last year. BLOOMBERG
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Online Citizen
4 hours ago
- Online Citizen
Xiaohongshu users share tips on applying for BTO while retaining overseas properties
On social media platforms, particularly Xiaohongshu (XHS), numerous posts are sharing detailed advice on how individuals can apply for Singapore's Build-To-Order (BTO) public housing while retaining ownership of overseas properties. These guides appear to target new Singapore citizens and permanent residents (PRs), addressing the demand from applicants who wish to keep overseas properties, particularly in neighbouring Malaysia, while securing a new HDB flat in Singapore. Several users provide specific strategies for applicants who are reluctant to part with their Malaysian properties. One commonly suggested method involves transferring the ownership of the overseas property to family members, typically parents, while the original owner continues to service the existing mortgage. Paid services offered on XHS to help applicants navigate BTO rules and retain overseas properties Some XHS users have openly claimed that they offer professional services to facilitate these processes. These services allegedly include assisting families in retaining overseas properties, shortening waiting periods of 15 to 30 months, and securing housing loans and grants in Singapore. XHS user details lengthy nine-month process to obtain HDB approval for property retention A user documented her nine-month journey navigating HDB's policies. The user explained that she applied to retain their Malaysian private residential property with HDB in June 2023. Over the following months, she consistently followed up via email and repeatedly submitted supporting documents. Eventually, in March 2024, HDB approved the application. In response to queries in the comment section, the user revealed that her elderly, unemployed parents were residing in the Malaysian property, which may have contributed to HDB's approval of their retention application. However, the complexities of the policy have led to further questions and debates among users. Some raised concerns about potential contradictions with Singapore's public housing rules if, after transferring ownership to parents, the property is later reclaimed by the original owner. A property agent on the platform addressed these concerns, stating that after fulfilling the Minimum Occupation Period (MOP) of their HDB flat, the original owners could transfer ownership of the Malaysian property back to themselves. The agent further promoted his services, offering assistance with ownership transfer processes, will drafting, and legal advice for new citizens regarding their overseas properties. User reminds strict enforcement of HDB's rules on overseas property ownership Nonetheless, not all experiences shared on XHS have been positive. Some users highlighted the strict enforcement of overseas property policies by HDB. One user recounted his friend's predicament. According to the user, the friend had declared ownership of a Malaysian apartment during the HDB flat application process two years ago. Due to a decline in property value, selling the Malaysian apartment would not cover the outstanding loan. The friend delayed selling the property, assuming that declaring it would suffice. However, HDB later issued a final notice, instructing the friend to dispose of the Malaysian apartment within six months or face repossession of the HDB flat. The user mentioned that the friend regretted declaring the property initially, as it might have triggered the stringent review. Further, the same user shared that he was assisting another client with a property ownership transfer, prompted by the client's relative having their HDB flat confiscated after HDB discovered undeclared overseas property ownership. In his post, the user cautioned others against assuming that undeclared properties would go unnoticed, emphasising that declaring overseas assets triggers a review period, while failing to declare carries its own risks. Some comments on the platform advised that it would be more prudent to resolve overseas property ownership matters before converting to Singapore citizenship, to avoid complications during HDB applications. Under existing HDB regulations, applicants for BTO flats, resale Plus or Prime flats with CPF housing grants, or HDB housing loans, must not own private residential property overseas or locally within 30 months before the application for an HDB Flat Eligibility (HFE) letter. The 30-month period is counted from the legal completion date of the property sale. Public housing as a fallback? Reddit questions BTO access for new citizens with no long-term plans Earlier, on 9 June 2025, a Reddit thread reignited public discourse about the accessibility of BTO flats for new citizens. The original poster alleged that a Malaysian colleague, who had recently become a Singaporean citizen, was applying for a BTO flat with a partner holding PR status. The couple, both in their late 20s, reportedly admitted that they had no long-term plans to reside in Singapore, instead viewing the BTO flat as an investment or a fallback option. The Reddit post criticised the lack of policies requiring a minimum citizenship tenure before BTO eligibility and the absence of checks to verify applicants' intentions to settle in Singapore. The poster contrasted the situation with that of native Singaporeans who have completed national service, paid taxes, and demonstrated long-term commitment, yet face difficulties securing affordable housing. While some comments described the couple's approach as financially astute, others deemed it ethically questionable. Additional voices pointed out that certain Singaporeans similarly maintain PR status for their Malaysian spouses to optimise housing and tax benefits in both countries. Several comments proposed policy reforms to tighten BTO eligibility criteria, such as introducing a longer citizenship period before application eligibility and stricter assessments of applicants' long-term settlement intentions.
Straits Times
8 hours ago
- Straits Times
DayOne gets $4.6 billion funding for Johor data centres
A DayOne data centre in Johor. The state has about 30 data centre projects completed or under construction, plus 20 more awaiting approvals. PHOTO: DAYONE Kuala Lumpur – DayOne Data Centers Singapore secured RM15 billion ($3.6 billion) of multicurrency financing to support its green data centers in Malaysia's Johor state, OCBC said. OCBC and its Malaysian unit OCBC Bank (Malaysia) acted as joint coordinators for the syndicated financing, which comprises a RM7.5 billion Islamic financing and a US$1.7 billion (S$2.2 billion) offshore term-loan facility, the bank said. The proceeds will be used for both refinancing and capital expenditure of DayOne's data centres that are expected to obtain green digital infrastructure certification, it said. DBS Group Holdings said that it was also involved in the syndicated financing, along with United Overseas Bank, CIMB Group Holdings, Malayan Banking, Credit Agricole CIB and Standard Chartered. UOB said the financing was one of the largest in South-east Asia for data centres and the biggest green Islamic syndicated facility in Malaysia. Maybank said it underwrote RM2.5 billion, or the biggest portion, of the Islamic financing tranche for DayOne. DayOne's anchor data centre campuses will be located at Nusajaya and Kempas Tech Parks in Johor, and will be part of investments into the Johor-Singapore Special Economic Zone, it added. Malaysia is turning into a beneficiary of Asia's growing need for data centres to support the boom in artificial intelligence. Johor has about 30 projects completed or under construction, plus 20 more awaiting approvals. Companies investing have included Microsoft and ByteDance. Johor is expected to host 60 per cent of Malaysia's total data centre capacity by 2030, Trade Minister Zafrul Aziz said in a speech delivered at the signing ceremony for the syndicated financing. DayOne, formerly the international arm of China's GDS Holdings, is now an independent group after deconsolidation. The facility, which is its biggest-ever loan, would be among the largest syndicated financings for the sector by a borrower in Asia, Bloomberg News reported. Earlier this month, DBS and UOB jointly arranged a 6.7 trillion rupiah (S$530 million) loan to fund a data center project in Indonesia that DayOne is helping to develop. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
AsiaOne
10 hours ago
- AsiaOne
$55k dream renovation turns into nightmare; contractor borrows money from homeowner, Singapore News
What was meant to be a dream "French cream style" makeover for a Sentosa flat has turned into a costly nightmare for a homeowner. Luo now finds himself dealing with uneven cabinetry, long delays, the lingering smell of formaldehyde and his daughter's bedroom looking like what he describes as "tombstone style". He told Shin Min Daily News he paid $55,000 to a Malaysian contractor he found on Facebook to renovate the unit at Ocean Way. He also spent an additional $18,000 on electrical wiring and $22,000 on Ziptrak blinds. His decision to go with a Malaysian company stemmed from previous experiences with Singapore-based firms that outsourced work across the Causeway. "I thought it would be more straightforward to deal with them directly," he said. Instead, the project dragged on for nearly a year and remains incomplete. Construction officially began only after Chinese New Year this year, despite an original move-in date set for November. "There was delay after delay," he said. "Once, we agreed to meet at 10am and I waited until 5pm. He didn't show up." Things didn't get better once work started. Luo said there were repeated issues: damaged flooring, cabinets that couldn't fit in the lift, misaligned fittings, and an overpowering chemical odour despite promises of "zero formaldehyde". The most jarring result was the treatment of his daughter's room, designed around a romantic arched entrance, which he says now resembles a grave marker. To make matters worse, Luo said the contractor, a husband-and-wife team, borrowed $2,000 before starting work. The husband claimed it was to pay workers' wages. A second request for $3,000 was rejected. Later, when Luo asked to be repaid, the wife claimed they had divorced and were merely 'business partners'. In a text message, the woman wrote: "I never borrowed money from you. I hate borrowing money from people. "Sky is no longer my husband. We divorced at the end of last year and have to continue the business, but I'm no longer tied to him by marriage. "That sum of money you lent out is not my responsibility. My responsibility is to help you do up your house nicely so that you can move in smoothly." Du, the contractor, confirmed that the money was borrowed, but insisted it was agreed to be deducted from the renovation costs. She also said most major items had been installed, and blamed the homeowner's lack of cooperation for the delays. "We received 75 per cent of the payment, but the progress exceeded what we were paid for," she said, adding that she decided to halt work until the $13,000 balance was paid. In a surprising turn, she hired a debt collection agency to chase Luo for the outstanding payment even though the work remains unfinished. Du insisted that there was never a guarantee of "zero formaldehyde" and that the arched wall design, which Luo's family now calls a "tombstone", had been approved by him. She also explained that a 15cm gap left in the cabinetry was intentional to accommodate later installations, not an error. "Yes, there was a delay from February to April, but it was a big unit and there were many details," she said. Luo has since engaged two other contractors to fix the problems. He said the whole experience has been draining financially and emotionally. "I haven't even moved in and it's already a mess. What's going to happen after?" [[nid:714357]] This article was first published in The New Paper . Permission required for reproduction.
