Latest news with #CityDevelopmentsLtd
The Star
6 days ago
- Business
- The Star
Trading ideas: IOI Properties, Affin, Nestcon, Grean Ocean, I-Bhd, Sime Property, Bintai Kinden, TMK, HE
KUALA LUMPUR: Here is a recap of the announcements that made headlines in Corporate Malaysia. IOI Properties Group Bhd is acquiring the remaining 50.1% stake in Singapore's South Beach development from City Developments Ltd for RM2.75bn (SGD834.2mn), gaining full ownership of the mixed-use asset. Affin Bank Bhd has raised USD300mn (RM1.3bn) through its first US dollar bond issuance under a USD2bn Euro Medium Term Note programme. The notes carry a 5.112% annual fixed rate and will be listed on the Singapore Exchange. Construction company Nestcon Bhd said its diversification into property development will take longer and plans will be revised. Green Ocean Corp Bhd plans to reallocate RM20.2mn from its rights issue funds, originally intended for its glove business, to support the expansion of its food and beverage segment, citing ongoing challenges in the glove industry such as falling prices and low utilisation. I-Bhd has committed RM10.0mn to implement artificial intelligence and robotics infrastructure across its income-generating assets in i-City, with full rollout targeted by 2028. Sime Darby Property Bhd has raised the minimum living wage for employees in the B40 income group by 80%, from RM1,500 to RM2,700 a month, as part of its commitment to employee well-being and inclusive growth. Bintai Kinden Corporation Bhd has seen its independent non-executive chairman, Datuk Ng Choon Koon, become a substantial shareholder again after acquiring shares on the open market and raising his stake to 6.62%. TMK Chemical Bhd announced that a major supplier will terminate its alkali distribution agreement in Vietnam effective Dec 31, 2025. HE Group Bhd ,which made its debut on Bursa's ACE Market just over a year ago, is planning to transfer to the Main Market.
Yahoo
6 days ago
- Business
- Yahoo
CDL to sell $2.75 billion Singapore office site to cut debt
By: Low De Wei (Bloomberg) — City Developments Ltd. agreed to sell its majority stake in one of Singapore's most iconic office complexes, according to a person 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% stake in South Beach to minority owner IOI Properties Group Bhd, the person 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 ($2.1 billion), the person said. An IOI spokesperson declined to comment. CDL didn't immediately respond to an emailed query. Shares of CDL rose about 1.6% before a trading halt Wednesday 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-story office tower, and a 45-story building housing a JW Marriott Hotel. The purchase adds to IOI's growing presence in Singapore, with residential developments as well as assets like 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$1.69 billion in 2007 along with two foreign partners, a unit of state-owned Dubai World Corp., and El-Ad Group Ltd. 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 Inc. gave up its seven floors of space at the office tower last year, and occupancy dropped to 92.4% as of the end of March, compared with 94.4% at the end of last year. More stories like this are available on ©2025 Bloomberg L.P.
Business Times
6 days ago
- Business
- Business Times
CDL to sell its 50.1% stake in South Beach development to partner IOI for S$834.2m
[SINGAPORE] City Developments Ltd (CDL) has agreed to sell its 50.1 per cent stake in office complex South Beach to project 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 in a statement on Wednesday (Jun 4). 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 South Beach property has reached maturity and has been delivering 'strong occupancy and stable income', the group said. Post-sale, IOI will take full ownership of the complex. Sherman Kwek, CDL's group chief executive officer, 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 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. As of 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 last year, with the exit bringing occupancy down to 92.4 per cent, compared with 94.4 per cent at the end of last year. CDL had 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. According to a Bloomberg report, 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, Bloomberg said. In CDL's Jun 4 statement, chairman 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 (ICBT) and the 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 rose about 1.6 per cent before a trading halt on Wednesday (Jun 4) morning. The group had 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 chief executive officer Sherman Kwek and his father and chairman Kwek 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 that reducing the growing debt load is a priority.
Straits Times
6 days ago
- Business
- Straits Times
CDL to sell majority stake in South Beach office complex to cut debt, source says
The deal will value the South Beach complex (centre) at about $2.75 billion, the source said. ST PHOTO: ALPHONSUS CHERN SINGAPORE - City Developments Ltd. (CDL) agreed to sell its majority stake in one of Singapore's largest mixed-use developments, according to a person familiar with the matter, as the developer seeks to reduce debt and regain investor confidence after a family feud rocked the firm. CDL will sell its 50.1 per cent stake in South Beach to minority owner IOI Properties Group, the person said, requesting not to be identified because the information is private. Malaysian developer IOI will have full ownership following the deal. The deal will value the complex at about $2.75 billion, the person said. An IOI spokesperson declined to comment. CDL called for a trading halt at 9.20am on June 4 pending release of an announcement. Its shares jumped 1.6 per cent, or eight cents, to $4.95 before the trading halt. 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 $600 million in divestments it made in 2024, which fell short of a $1 billion target. The complex in Singapore's central business district includes retail space, a 34-story office tower, and a 45-story building housing a JW Marriott Hotel. The purchase adds to IOI's growing presence in Singapore, with residential developments as well as assets like IOI Central Boulevard Towers, a newly opened city center 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 $1.69 billion in 2007 along with two foreign partners, a unit of state-owned Dubai World Corp., 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 in 2024, and occupancy dropped to 92.4 per cent as of the end of March, compared with 94.4 per cent at the end of 2024. BLOOMBERG Join ST's Telegram channel and get the latest breaking news delivered to you.
Bloomberg
7 days ago
- Business
- Bloomberg
Singapore's CDL to Sell $2.1 Billion Office Complex to Cut Debt
City Developments Ltd. agreed to sell its majority stake in one of Singapore's most iconic office complexes, according to a person familiar with the matter, as the developer seeks to reduce debt and regain investor confidence after a family feud rocked the firm. CDL will sell its 50.1% stake in South Beach to minority owner IOI Properties Group Bhd, the person 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 ($2.1 billion), the person said.
