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Time of India
3 days ago
- Business
- Time of India
Singapore's City Developments to sell office complex stake for $646 million
BENGALURU: Singapore-listed City Developments Ltd said on Wednesday that it will sell its entire 50.1% stake in one of its office complexes in the city-state to Malaysia's IOI Properties for S$834.2 million ($646.37 million). The South Beach complex in a central business district in Singapore includes retail space, a 34-storey office tower, and a 45-storey building housing a JW Marriott Hotel. Upon completion of the deal, expected by the third quarter of the year, IOI Properties will become the sole owner of the commercial components of the South Beach complex, City Developments said in a statement. The deal valued the complex, in which City Developments and IOI have been joint venture partners since 2011, at S$2.75 billion. "This transaction gives a strong boost to CDL's efforts to accelerate capital recycling so as to reduce gearing and redeploy capital," City Developments' CEO Sherman Kwek said. City Developments, one of Singapore's largest property developers, was embroiled in a boardroom tussle earlier this year when its executive chairman, Kwek Leng Beng, accused his son, Sherman Kwek, the company's CEO, of plotting a boardroom coup. However, in March, the company said the executive chairman dropped the lawsuit against his son while adding that both the father and son will remain in their roles. Shares of City Developments rose around 1.6% in early trade before going on a halt. IOI shares were also halted for trade. The shares are expected to resume trading soon.
Malaysian Reserve
4 days ago
- Business
- Malaysian Reserve
IOI Properties to take full ownership of South Beach in RM2.75b deal
IOI Properties Group Bhd (IOIPG) is acquiring the remaining 50.1% stake in Singapore's South Beach development from joint venture partner City Developments Ltd (CDL) for S$834.2 million (approximately RM2.75 billion), bringing its ownership to 100%. The deal, executed via IOIPG's wholly owned unit IOI Consolidated (Singapore) Pte Ltd, is based on an agreed property value of S$2.75 billion, a 3% premium over its last independent valuation of S$2.67 billion as at end-2024. Completion is expected by the third quarter of 2025, subject to approvals. 'The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOIPG in Singapore,' said IOIPG group CEO Lee Yeow Seng. 'Combined with the IOI Central Boulevard Towers 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,' he added. South Beach is a 3.5-hectare mixed-use development directly linked to Esplanade and City Hall MRT stations, with about 81 years remaining on its 99-year lease. As at March 2025, its office and retail segments had occupancy rates of 92.4% and 92.5%, respectively. The acquisition will be funded via a mix of internal funds and borrowings. IOIPG expects EPS to rise from 37.45 sen to 46.88 sen for FY2025, driven by remeasurement gains and full earnings consolidation. Net gearing is projected to increase from 0.70x to 0.93x post-completion. CDL, which is divesting its stake, said the move supports its capital recycling strategy. 'This strategic divestment enables CDL to realise exceptional value, while entrusting the ownership to a partner that knows South Beach well, marking a natural evolution in our successful partnership,' said CDL executive chairman Kwek Leng Beng. CDL retains about 2.6 million sq ft of commercial and retail space in Singapore and continues to operate six hotels, including The St. Regis Singapore and The Singapore EDITION. IOIPG's total assets now stand at RM47.93 billion as at March 31, 2025. — TMR
Forbes
4 days ago
- Business
- Forbes
Billionaire Kwek Family's CDL Sells Stake In Singapore's South Beach To Malaysia's IOI Properties
The South Beach, located in the Singapore central business district, houses the JW Marriott Hotel ... More and an office block. City Developments Ltd. (CDL)—controlled by billionaire Kwek Leng Beng and his family—has agreed to sell a majority stake in a mixed used office, hotel and residential complex in the Singapore central business district to its Malaysian partner, IOI Properties. Under the deal, IOI Properties—controlled by controlled by Malaysian billionaire brothers Lee Yeow Chor and Lee Yeow Seng, whose family made their fortune from palm oil—will buy CDL's 50.1% stake in South Beach in a deal valuing the the property at S$2.75 billion ($2.1 billion), according to a joint statement from the partners. Upon completion of the deal in the third quarter of this year, IOI Properties will fully own the commercial property, comprising the JW Marriott Hotel in a 45-story skyscraper, a 34-story office tower and retail space. The 190-unit South Beach Residences has been fully sold since September 2021. 'The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOI Properties,' Lee Yeow Seng, group CEO of IOI Properties, said in the statement. IOI Properties has been expanding its portfolio in Singapore. It recently opened the IOI Central Boulevard Towers in Marina Bay. Built at a cost of about S$4 billion (including the land cost), the complex comprises a seven-story podium, a 16-story tower and a 48-story skyscraper. Nearby, the company is developing yet another landmark, a W Residences Marina View, comprising a hotel and a residential condominium. With a combined net worth of $5.2 billion, the Lee brothers are among the wealthiest in Malaysia. They are the sons of the late Lee Shin Ying, who built a thriving palm oil and property business until his death in 2019. Lee Yeow Chor runs the palm oil business under separately listed IOI Corp, while his younger brother Yeow Seng helms the real estate company. For City Developments, the divestment of its stake in South Beach would help the company pare down its debts, which has eroded its bottomline. CDL's net profit slumped 37% to S$201 million in 2024 amid weaker contributions from property development and increased finance charges. Sherman Kwek, group CEO of CDL, said proceeds from the divestment will help reduce the company's gearing and redeploy capital. The company has been selectively developing new residential projects in Singapore amid softening demand. City Developments this week submitted the highest bid of S$608 million for a residential plot in the western Singapore suburb of Jurong. It plans to build five 16-story residential blocks with a total of 575 units on the site, which sits right next to the Lakeside MRT station. 'We look forward to creating a vibrant residential community that complements the ongoing transformation of the Jurong Lake District into a vibrant lifestyle and commercial hub, aligned with Singapore's broader decentralisation strategy and future growth corridors,' Sherman Kwek said in a separate statement.
New Straits Times
4 days ago
- Business
- New Straits Times
Singapore's City Developments to sell office complex stake for US$646 million
KUALA LUMPUR: Singapore-listed City Developments Ltd said on Wednesday that it will sell its entire 50.1 per cent stake in one of its office complexes in the city-state to Malaysia's IOI Properties for S$834.2 million (US$646.37 million). The South Beach complex in a central business district in Singapore includes retail space, a 34-storey office tower, and a 45-storey building housing a JW Marriott Hotel. Upon completion of the deal, expected by the third quarter of the year, IOI Properties will become the sole owner of the commercial components of the South Beach complex, City Developments said in a statement. The deal valued the complex, in which City Developments and IOI have been joint venture partners since 2011, at S$2.75 billion. "This transaction gives a strong boost to CDL's efforts to accelerate capital recycling so as to reduce gearing and redeploy capital," City Developments' CEO Sherman Kwek said. City Developments, one of Singapore's largest property developers, was embroiled in a boardroom tussle earlier this year when its executive chairman, Kwek Leng Beng, accused his son, Sherman Kwek, the company's CEO, of plotting a boardroom coup. However, in March, the company said the executive chairman dropped the lawsuit against his son while adding that both the father and son will remain in their roles. Shares of City Developments rose around 1.6 per cent in early trade before going on a halt. IOI shares were also halted for trade. The shares are expected to resume trading soon.
Business Times
4 days ago
- Business
- Business Times
CDL said to be selling majority stake in S$2.75 billion South Beach development to partner IOI
[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. CDL shares were 1.64 per cent up on Wednesday morning before trading in the counter was suspended. BLOOMBERG
