Singapore’s City Developments Limited (CDL) recorded divestments of more than $600 million in the past year, falling short of its initial aim of $1 billion. The company’s CEO, Sherman Kwek, stated that the company will continue to push forward with its divestment plans despite the challenging market conditions.
The completed divestments include the sale of Ransome’s Wharf site in London, a 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.
Although the total amount from these divestments falls short of the company’s initial target, Kwek remains positive about the momentum and states that the company will continue to focus on accelerating its capital recycling initiatives. He also emphasizes the company’s goal to optimize its capital management and align its portfolio with its strategic objectives to maximize shareholder value.
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Among the divestments, the retail and office components of Hong Leong City Center (HLCC), a mixed-use development in Suzhou, is currently under contract and is expected to be completed this quarter. CDL has also rolled out The Orie, a new development in Toa Payoh jointly developed with Frasers Property and Sekisui House, with prices starting from $1.28 million.
CDL shares closed at $5.05 on January 16, down 0.2% for the day and down 20.97% in the past one year. Despite the challenging market conditions, the company remains optimistic and focused on achieving its strategic objectives and maximizing shareholder value.