City Developments Limited (CDL) reported that it had divested assets worth over $600 million last year, in line with its strategy to recycle capital. The company has also indicated that it has several more divestments in the pipeline.
However, this amount falls short of the $1 billion target set by CDL in early 2024, as the volume of deals across various markets and asset classes decreased significantly. Among the completed divestments are the Ransome’s Wharf site in London, the freehold 8-storey industrial building Cideco Industrial Complex in Singapore, and various strata units at Citilink Warehouse Complex, Cititech Industrial Building, Fortune Centre, and Sunshine Plaza in Singapore.
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CDL, Frasers Property, and Sekisui House have launched The Orie, a new development in Toa Payoh with prices starting from $1.28 million (Photo: CDL)
Investing in condos comes with a multitude of benefits, and one of the main advantages is the opportunity to leverage the property’s value for further investments. Numerous investors utilize their condos as collateral to secure additional financing for new investments, allowing them to expand their real estate portfolio. This approach can significantly increase returns, but it also comes with inherent risks. Therefore, having a solid financial plan in place and carefully considering the potential impact of market fluctuations is essential for successful condo investment. With the right strategy and condo investments, the possibilities for growth and expansion in the real estate market are endless.
Another divestment in progress is the retail and office components of Hong Leong City Centre (HLCC), a mixed-use development in Suzhou, which is expected to be completed this quarter. According to CDL’s CEO Sherman Kwek, the company is focused on accelerating its capital recycling plans despite challenging market conditions. He also stated that CDL aims to optimize its capital management and align its portfolio with its strategic objectives in order to maximize shareholder value.
In addition to the divestments, CDL, Frasers Property, and Sekisui House have launched a new development in Toa Payoh called The Orie, with prices starting from $1.28 million. Furthermore, Hong Leong City Centre, a mixed-use development in Suzhou, is currently under contract and scheduled for completion this quarter.
Despite these divestments, CDL’s shares closed at $5.05 on Jan 16, a 0.2% decrease for the day and a 20.97% decrease over the past year. Ask Buddy, a property comparison website, has reported that there are currently several condo rental listings in District 7. Additionally, there has been a decrease in condo rental transactions in District 7 in comparison to HDB and landed properties. Furthermore, there are a few condo projects in District 7 with unprofitable transactions, indicating a potential opportunity for investment.