Latest news with #CityDevelopmentsLimited
Yahoo
a day ago
- Business
- Yahoo
Top Stock Market Highlights of the Week: City Developments Limited, GlobalFoundries and Mapletree Investments
Welcome to this week's edition of top stock market highlights. City Developments Limited, or CDL, and IOI Properties Group Berhad (KLSE: 5249) announced a share sale agreement for their joint venture South Beach mixed-use development. Under this agreement, IOI will acquire CDL's 50.1% stake in South Beach based on an agreed property value of S$2.75 billion. This value is a 3% premium over South Beach's latest valuation of S$2.67 billion as of 31 December 2024. Based on CDL's share, the sales consideration amounts to S$834.2 million. Both CDL and IOI have been joint venture partners in South Beach since 2011. The property comprises Grade A office space, a 634-room hotel, restaurants, cafes, and South Beach Residences, which consist of 190 luxury apartments and penthouses. CDL expects that the disposal will result in a gain of approximately S$465 million when the transaction is completed by the third quarter of this year. The blue-chip property group believes that this divestment represents a strategic opportunity to unlock value from South Beach and will provide it with enhanced financial flexibility to redeploy the proceeds. The sale also allows CDL to crystallise gains in the property, and proceeds will be used to reduce borrowings to improve its net gearing ratio. The cash can also be used for new acquisitions, investing in new development projects, or to optimise its capital management. Such divestments remain a key pillar of CDL's strategy and involve capital recycling activities that promise to unlock value for its shareholders. GlobalFoundries is the latest company to announce plans to spend money to bolster its US production. The Malta-based company manufactures essential chips for semiconductors and electronics makers that handle vital but mundane tasks such as controlling power and managing the flow of data inside devices. The artificial intelligence (AI) boom increased demand for a variety of chips, boosting the need for power-efficient chips used in data centres and communication equipment. GlobalFoundries, which is majority-owned by the government of Abu Dhabi, will commit US$13 billion to expand its existing plants in New York and Vermont. The company will also make a US$3 billion spending commitment to research into advanced packaging and other technologies in the US. However, CEO Tim Breen did not give a specific timeline on when this amount will be spent, citing the company's need to be flexible in managing the supply-demand balance. The investment is driven by higher demand from chip customers who are seeking more local production in an attempt to reduce reliance on suppliers that are concentrated in just one location. This diversification is a direct effect of Trump's tariff announcement as companies seek to rejig or re-adjust their supply chains to avoid paying higher taxes. Mapletree Investments Pte Ltd, or MIPL, reported a strong turnaround for its fiscal 2025 (FY2025) ending 31 March 2025. The investment firm announced a net profit of S$227.2 million, reversing the net loss of S$577.2 million in FY2024, largely due to revaluation losses. Recurring net profit, however, fell by close to 11% year on year to S$637.4 million. MIPL's FY2025 revenue stood at S$2.2 billion, lower than the prior year's S$2.8 billion, because of the deconsolidation of Mapletree Logistics Trust (SGX: M44U). Despite the lower core net profit, the investment company's assets under management (AUM) grew from S$77.5 billion to end FY2025 at S$80.3 billion. The increase was due to a larger number of acquisitions and development projects. The company acquired Derby DC1 and Verda Park in the UK, marking its first foray into the country. MIPL also purchased a portfolio of 10 logistics assets in Spain. Meanwhile, the firm is also marketing its Mapletree Emerging Growth Asia Logistics Development Fund, which focuses on Malaysia, India, and Vietnam. This fund, which is targeted to close this year, will comprise development assets with AUM of up to US$1.8 billion. MIPL is also the fourth-largest student housing owner in the UK, rising from seventh place last year. The group owns 30,000 student beds in the UK and the US. Another area of growth is data centres, with MIPL set to complete the construction of its first data centre development in Hong Kong in the second half of this year. It is also exploring acquisition opportunities in locations such as London, Milan, Madrid, Japan, and South Korea. As it builds up its data centre portfolio, there is a chance that these assets could be injected into Mapletree Industrial Trust (SGX: ME8U), another REIT that MIPL sponsors. We've found 5 SGX-listed dividend stocks with strong track records in turbulent markets. If you want consistency in an uncertain world, start here. Follow us on Facebook, Instagram and Telegram for the latest investing news and analyses! Disclosure: Royston Yang owns shares of Mapletree Industrial Trust. The post Top Stock Market Highlights of the Week: City Developments Limited, GlobalFoundries and Mapletree Investments appeared first on The Smart Investor.
Independent Singapore
6 days ago
- Business
- Independent Singapore
CDL's S$608M bid for Lakeside Drive could become one of the highest land rates outside central region in years, property expert says
Photo: Screengrab from URA SINGAPORE: City Developments Limited's (CDL) S$608 million bid — or S$1,132 per square foot per plot ratio (psf ppr) — for the Government Land Sales (GLS) site at Lakeside Drive was the highest of six bids and could become one of the highest land rates for a residential GLS site outside the central region in recent years, if the site is awarded to the property giant, said Wong Siew Ying, head of research and content at PropNex, EdgeProp Singapore reported. The Urban Redevelopment Authority (URA) closed the tender for the site at Lakeside Drive on Tuesday (June 3). The 145,314 sq ft plot is zoned for a mix of residential and commercial use. It sits right next to Lakeside MRT station and can yield about 575 housing units along with 10,764 sq ft of commercial space. The plot has a gross plot ratio of 3.6 and is near Jurong Lake Gardens. CDL's offer came in 10.4% above the second-highest bid of S$550.56 million, or S$1,025 psf ppr, from a joint venture between Frasers Property and Mitsubishi Estate Asia. A CapitaLand Development and Sing Holdings tie-up placed the third-highest bid at just over S$529 million (S$985 psf ppr). The fourth bid came from Wee Hur Holdings at S$503.9 million (S$938 psf ppr), followed by Hong Leong Holdings and TID at S$495.18 million (S$922 psf ppr), and Sim Lian Group at S$488.2 million (S$909 psf ppr). If awarded, CDL plans to develop five 16-storey residential blocks with 575 units and a ground-floor retail podium. Sherman Kwek, CDL's group CEO, said the site's location near Jurong Lake District 'stands out for its excellent connectivity and access to a rich array of amenities, schools and green spaces.' He added, 'With the last GLS site in the vicinity awarded nearly a decade ago, this site will be a strategic addition to our development pipeline.' Only two land rates have been higher than CDL's bid, which were transacted earlier this year: S$1,388 psf ppr for Bayshore Road and S$1,250 psf ppr for Clementi Avenue 1. The bid is also higher than the S$1,037 psf ppr for Media Circle (Parcel A) in the Rest of Central Region (RCR). Ms Wong estimates the future development at the Lakeside Drive site could have an average selling price of around S$2,400 psf. /TISG Read also: HPL receives green light to acquire entire Concorde Hotel and Shopping Mall strata area at S$821M
Business Times
6 days ago
- Business
- Business Times
CDL selling its 50.1% South Beach stake to its Malaysian partner IOI for S$834 million, yielding S$465 million gain
[SINGAPORE] City Developments Limited (CDL) has agreed to sell its 50.1 per cent stake in the South Beach mixed project to its Malaysian partner, IOI Properties Group (IOIPG), for about S$834.2 million. The deal values the complex at about S$2.75 billion, which represents a premium of about 3 per cent over the most recent valuation of S$2.67 billion as at Dec 31, 2024. The transaction is expected to result in a gain on disposal of about S$465 million for the financial year ending Dec 31, 2025, CDL said on Wednesday (Jun 4). IOIPG will take full ownership of South Beach's commercial components upon completion in the second half of 2025. CDL added that the sale price was based on 50.1 per cent of the consolidated net assets of Scottsdale Properties, which owns South Beach Consortium, which in turn owns South Beach. IOI noted in a bourse filing that Scottsdale's liabilities of S$1.16 billion were also factored in. Cash proceeds from the proposed divestment will enable CDL to reduce bank borrowings and improve its net gearing ratio, the group said. Capital from the sale will also be used to pursue new acquisitions, invest in upcoming pipeline development projects and optimise capital management. Assuming that the deal had been completed at the end of FY2024, the group's net gearing ratio would have fallen to 103 per cent, from 117 per cent, CDL said. It would have logged earnings of S$638.5 million, up from S$190.8 million, had the deal been completed at the beginning of FY2024. Earnings per share would have risen to S$0.712, from S$0.213. 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 CDL's board believes the sale supports positive returns for the group's business and aligns with its strategic focus on capital recycling. It said the Beach Road property has reached maturity and has been delivering 'strong occupancy and stable income'. Sherman Kwek, CDL's group chief executive, said: 'Having fulfilled our vision for South Beach – from securing the land site via a rigorous tender process in 2007, navigating macroeconomic challenges, to transforming it into the high-performing, stabilised asset it is today – it is now time to crystallise its value.' The Norman Foster-designed project in Singapore's Central Business District includes retail space, a 34-storey office tower and a 45-storey building housing JW Marriott Hotel Singapore. As at Mar 31, South Beach's office and retail components posted committed occupancy of 92.4 per cent and 92.5 per cent, respectively, CDL said on Wednesday. Major tenant Meta Platforms last year gave up seven floors of space at the office tower; the exit brought occupancy down to 92.4 per cent from 94.4 per cent at the end of last year. CDL acquired the site through a government land sale for nearly S$1.7 billion in 2007, with two foreign partners – a unit of state-owned Dubai World, and El-Ad Group. Based on a Bloomberg report, the global financial crisis led to a years-long delay in construction. The two partners exited the project, with IOIPG eventually taking a minority stake in 2011. Kwek Leng Beng, executive chairman of CDL, resisted letting IOIPG take an equal stake in order to maintain control, based on a biography published in 2023, Bloomberg said. In CDL's statement on Wednesday, the elder Kwek said: 'South Beach began as a bold vision to enhance Singapore's reputation as a global city, attract international investors and create a new icon that blends modern, sustainable architecture while preserving the site's conserved buildings.' IOIPG group CEO Lee Yeow Seng said: 'The acquisition of a 100 per cent equity stake in this landmark development marks a significant strategic expansion for IOIPG in Singapore. Combined with the IOI Central Boulevard Towers and W Singapore Marina View hotel, this acquisition will elevate the group's profile as one of the major landlords of premium office space and a prominent player in the hospitality industry within the Republic.' The Malaysia-listed group is controlled by the Lee family, which made its fortunes from palm oil. CDL shares were up 2.1 per cent or S$0.10 at S$4.97 on Wednesday as at 3.24 pm, after its trading halt was lifted. The group said in 2024 that it aimed to divest S$1 billion in assets, and has announced about S$600 million in divestment so far. News of the South Beach sale comes in the wake of a public feud between father and son in CDL's Kwek family, which erupted in late February. While they have since buried the hatchet, the younger Kwek acknowledged at CDL's annual general meeting in April that the dispute had hurt shareholders' confidence. He also identified reducing the growing debt load as a priority.
Business Times
6 days ago
- Business
- Business Times
CDL selling its 50.1% South Beach stake to partner Malaysia's IOI for S$834 million, yielding S$465 million gain
[SINGAPORE] City Developments Limited (CDL) has agreed to sell its 50.1 per cent stake in the South Beach mixed project to partner Malaysia's IOI Properties Group (IOIPG) for about S$834.2 million. The deal values the complex at about S$2.75 billion, which represents a premium of about 3 per cent over the latest valuation of S$2.67 billion as at Dec 31, 2024. The transaction is expected to result in a gain on disposal of about S$465 million for the financial year ending Dec 31, 2025, CDL said on Wednesday (Jun 4). IOIPG will take full ownership of South Beach's commercial components upon completion in the second half of 2025. CDL added that the sale price was based on 50.1 per cent of the consolidated net assets of Scottsdale Properties, which owns South Beach Consortium, which in turn owns South Beach. It also takes into account an agreed property value of S$2.75 billion and Scottsdale's liabilities of S$1.16 billion. Cash proceeds from the proposed divestment will allow CDL to reduce bank borrowings and improve net gearing ratio, the group said. Capital from the sale will also be used to pursue new acquisitions, invest in upcoming pipeline development projects and optimise capital management. Assuming that the deal had been completed at the end of FY2024, the group's net gearing ratio would have fallen to 103 per cent, from 117 per cent, CDL said. It would have logged earnings of S$638.5 million, up from S$190.8 million, had the deal been completed at the beginning of FY2024. Earnings per share would have risen to S$0.712, from S$0.213. 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 CDL's board believes the sale supports positive returns for the group's business and aligns with its strategic focus on capital recycling. It said the Beach Road property has reached maturity and has been delivering 'strong occupancy and stable income'. Sherman Kwek, CDL's group chief executive, said: 'Having fulfilled our vision for South Beach – from securing the land site via a rigorous tender process in 2007, navigating macroeconomic challenges, to transforming it into the high-performing, stabilised asset it is today – it is now time to crystallise its value.' The Norman Foster-designed project in Singapore's Central Business District includes retail space, a 34-storey office tower and a 45-storey building housing JW Marriott Hotel Singapore. As at Mar 31, South Beach's office and retail components posted committed occupancy of 92.4 per cent and 92.5 per cent, respectively, CDL said on Wednesday. Major tenant Meta Platforms last year gave up seven floors of space at the office tower, with the exit bringing occupancy down to 92.4 per cent, compared with 94.4 per cent at the end of last year. CDL acquired the site at a government land sale for nearly S$1.7 billion in 2007, with two foreign partners – a unit of state-owned Dubai World, and El-Ad Group. Based on a Bloomberg report, the global financial crisis led to a years-long delay in construction and the two partners exited the project, with IOIPG eventually taking a minority stake in 2011. Kwek Leng Beng, executive chairman of CDL, resisted allowing IOIPG to take an equal stake in order to maintain control, based on a biography published in 2023, Bloomberg said. In CDL's Wednesday statement, the elder Kwek said: 'South Beach began as a bold vision to enhance Singapore's reputation as a global city, attract international investors and create a new icon that blends modern, sustainable architecture while preserving the site's conserved buildings.' IOIPG group CEO Lee Yeow Seng said: 'The acquisition of the 100 per cent equity stake in this landmark development marks a significant strategic expansion for IOIPG in Singapore. Combined with the IOI Central Boulevard Towers and W Singapore – Marina View hotel, this acquisition will elevate the group's profile as one of the major landlords of premium office space and a prominent player in the hospitality industry within the Republic.' The Malaysia-listed group is controlled by the Lee family, which made its fortunes from palm oil. CDL shares were up 2.1 per cent or S$0.10 at S$4.97 on Wednesday as at 3.24 pm, after its trading halt was lifted. The group said in 2024 that it aimed to divest S$1 billion in assets, and has announced about S$600 million in divestments so far. News of the South Beach sale comes in the wake of a public feud between father and son in CDL's Kwek family, which emerged in late February. While they have since buried the hatchet, the younger Kwek acknowledged at CDL's annual general meeting in April that the dispute had hurt shareholders' confidence, and said reducing the growing debt load is a priority.
Business Times
6 days ago
- Business
- Business Times
CDL selling its 50.1% South Beach stake to partner IOI for S$834 million, yielding S$465 million gain
[SINGAPORE] City Developments Limited (CDL) has agreed to sell its 50.1 per cent stake in the South Beach mixed project to partner IOI Properties Group (IOIPG) for about S$834.2 million. The deal values the complex at about S$2.75 billion, which represents a premium of about 3 per cent over the latest valuation of S$2.67 billion as at Dec 31, 2024. The transaction is expected to result in a gain on disposal of about S$465 million for the financial year ending Dec 31, 2025, CDL said on Wednesday (Jun 4). IOIPG will take full ownership of South Beach's commercial components upon completion in the second half of 2025. CDL added that the sale price was based on 50.1 per cent of the consolidated net assets of Scottsdale Properties, which owns South Beach Consortium, which in turn owns South Beach. It also takes into account an agreed property value of the property of S$2.75 billion and Scottsdale's liabilities of S$1.16 billion. Cash proceeds from the proposed divestment will allow CDL to reduce bank borrowings and improve net gearing ratio, the group said. Capital from the sale will also be used to pursue new acquisitions, invest in upcoming pipeline development projects and optimise capital management. Assuming that the deal had been completed at the end of FY2024, the group's net gearing ratio would have fallen to 103 per cent, from 117 per cent, CDL said. It would have logged earnings of S$638.5 million, up from S$190.8 million, had the deal been completed at the beginning of FY2024. Earnings per share would have risen to S$0.712, from S$0.213. 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 CDL's board believes the sale supports positive returns for the group's business and aligns with its strategic focus on capital recycling. It said the Beach Road property has reached maturity and has been delivering 'strong occupancy and stable income', the group said. Sherman Kwek, CDL's group chief executive, said: 'Having fulfilled our vision for South Beach – from securing the land site via a rigorous tender process in 2007, navigating macroeconomic challenges, to transforming it into the high-performing, stabilised asset it is today – it is now time to crystallise its value.' The Norman Foster-designed project in Singapore's Central Business District includes retail space, a 34-storey office tower, and a 45-storey building housing JW Marriott Hotel Singapore. As at Mar 31, South Beach's office and retail components posted committed occupancy of 92.4 per cent and 92.5 per cent, respectively, CDL said on Wednesday. Major tenant Meta Platforms last year gave up seven floors of space at the office tower, with the exit bringing occupancy down to 92.4 per cent, compared with 94.4 per cent at the end of last year. CDL acquired the site at a government land sale for nearly S$1.7 billion in 2007, with two foreign partners – a unit of state-owned Dubai World, and El-Ad Group. Based on a Bloomberg report, the global financial crisis led to a years-long delay in construction and the two partners exited the project, with IOIPG eventually taking a minority stake in 2011. Kwek Leng Beng, executive chairman of CDL, resisted allowing IOIPG to take an equal stake in order to maintain control, based on a biography published in 2023, Bloomberg said. In CDL's Jun 4 statement, the elder Kwek said: 'South Beach began as a bold vision to enhance Singapore's reputation as a global city, attract international investors and create a new icon that blends modern, sustainable architecture while preserving the site's conserved buildings.' IOIPG group CEO Lee Yeow Seng said: 'The acquisition of the 100 per cent equity stake in this landmark development marks a significant strategic expansion for IOIPG in Singapore. Combined with the IOI Central Boulevard Towers and W Singapore – Marina View hotel, this acquisition will elevate the group's profile as one of the major landlords of premium office space and a prominent player in the hospitality industry within the Republic.' The Malaysia-listed group is controlled by the Lee family, which made its fortunes from palm oil. CDL shares were up 2.1 per cent or S$0.10 at S$4.97 on Wednesday, shortly after its trading halt was lifted. The group said in 2024 that it aimed to divest S$1 billion in assets, and has announced about S$600 million in divestments so far. News of the South Beach sale comes in the wake of a public feud between father and son in CDL's Kwek family, which emerged in late-February. While CEO Kwek and his father and chairman Leng Beng have since buried the hatchet, the younger Kwek acknowledged at CDL's annual general meeting in April that the dispute had hurt shareholders' confidence, and said reducing the growing debt load is a priority.
