City Developments Ltd (CDL) has its 50.1% interest in the commercial component of its South Beach development in downtown Singapore to its Malaysian joint venture partner, IOI Properties Group (IOIPG), in a deal that values the entire project at S$2.75bn (€1.87bn).
CDL and IOIPG, which have been joint venture partners in South Beach since 2011, have entered a share sale agreement allowing IOIPG to take ownership of the commercial component on completion later this year.
The strata-titled residential component, South Beach Residences, has been fully sold since September 2021.
The sale is one of the largest divestments by CDL to recycle capital. The agreed price reflected a 3% premium over the latest valuation of S$2.67bn as of 31 December 2024.
Kwek Leng Beng, CDL’s executive chairman, said: “South Beach began as a bold vision to enhance Singapore’s reputation as a global city, attract international investors and create a new icon that blends modern, sustainable architecture while preserving the site’s conserved buildings.”
Sherman Kwek, CDL’s group chief executive officer, said South Beach represented the shared commitment and fruitful partnership CDL had forged with IOIPG for over a decade.
“This transaction gives a strong boost to CDL’s efforts to accelerate capital recycling so as to reduce gearing and redeploy capital. We will continue to unlock value across our diversified portfolio and pursue future growth opportunities.”
Lee Yeow Seng, IOIPG’s group chief executive officer, said: “The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOIPG in Singapore.”
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