City Developments Limited (CDL) and IOI Properties Group Berhad (IOIPG) have announced a landmark transaction involving the South Beach development in Singapore. IOIPG will acquire CDL’s 50.1% stake in the mixed-use integrated development for $834.2m, based on a total property valuation of $2.75b. This acquisition, expected to complete by Q3, will give IOIPG full ownership of the commercial components of South Beach.
The South Beach development, a joint venture between CDL and IOIPG since 2011, is a prominent architectural landmark in Singapore. It includes Grade A office space, a JW Marriott Hotel, and luxury residences. The site, awarded through a Government Land Sales tender in 2007, has about 81 years remaining on its lease.
CDL’s Executive Chairman, Kwek Leng Beng, highlighted the strategic divestment as a means to realise exceptional value, whilst IOIPG’s Group CEO, Lee Yeow Seng, noted the acquisition’s significance in enhancing IOIPG’s asset portfolio in Singapore. The transaction aligns with CDL’s capital recycling strategy and IOIPG’s focus on acquiring high-quality assets for stable income.
Following the divestment, CDL retains a substantial commercial and retail portfolio in Singapore, whilst IOIPG’s total net lettable area in Singapore will increase to 1.8 million sq ft. The acquisition is part of IOIPG’s broader strategy to strengthen its presence in mature markets like Singapore.
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