City Developments Limited (CDL) has sold its multifamily residential asset in the US to an unnamed local institutional investor for $143.5m (€124.5m).
CDL developed the 1250 Lakeside complex in California’s Silicon Valley, from the former site of Four Points by Sheraton Sunnyvale, which also includes a 263-room M Social Hotel Sunnyvale, currently under development and expected to be completed next year.
The group will retain the hotel, which will be operated by its subsidiary Millennium Hotels and Resorts.
Sherman Kwek, CDL’s group CEO, said: “The divestment of 1250 Lakeside exemplifies our disciplined focus on capital recycling and active portfolio management. As a non-core, standalone asset in the US with limited operational scale in the multifamily space, this transaction enables us to reduce gearing and redeploy the capital to maximise shareholder returns.
“Since privatising Millennium & Copthorne Hotels in 2019, we have gradually adopted a more agile approach to optimise its portfolio, unlocking value from non-core and mature assets, enhancing financial flexibility and driving harmonisation.”
The hospitality chain has since sold hotels in South Korea, the UK and the US, held a collective sale of Tanglin Shopping Centre in Singapore, along with what it calls the “deconsolidation” of CDL Hospitality Trusts.
Following the latest divestment, the group’s global living sector portfolio comprises approximately 7,600 multifamily units and student accommodation beds across Singapore, Japan, the UK and Australia, with a total gross development value of approximately S$3.7bn (€2.5bn).
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