CDL in Singapore plans to sell S$6 billion in assets — Channel NewsAsia

Singaporean group City Developments Limited (CDL) plans to sell S$6 billion, or about US$4.7 billion, in assets over three years. This will account for approximately one-sixth of the company’s assets, which are valued at S$36 billion on its balance sheet, Channel NewsAsia reports.

Asset sales

As part of its updated three-year strategy, CDL intends to unlock the value of mature and non-core assets. About 30% of the planned sales are expected to come from hotel properties, while 45% will come from commercial real estate. The remaining 25% of divestments will be carried out through residential assets from the legacy portfolio, the living segment and other portfolio assets.

CDL Group Chief Executive Officer Sherman Kwek said that the board of directors and management had agreed on the strategy and would focus on its implementation. According to him, the company will maintain unwavering focus on executing the plan.

More current news is available on the UA.News Telegram channel Telegram.

Investments and dividends

The company also forecasts cash inflows of S$6 billion over the next three years. They are expected to come from sales of development projects, future payments under signed contracts and the existing project portfolio.

CDL intends to allocate S$5 billion to new investments for further growth. Approximately 60% of these funds are planned for projects in Singapore, 30% for China and Japan, and the remainder for other markets. Kwek noted that this allocation is not a rigid quota: decisions will depend on the results of land tenders and whether projects meet risk-adjusted target returns.

The group also plans to allocate more than 35% of profit after tax and after deducting non-controlling interests to dividends each year.