City Developments Limited (CDL) has announced that it has divested assets worth more than $600 million last year as part of its capital recycling strategy, with several more in the pipeline.
The total amount of divested assets fell short of the company’s initial target of $1 billion set in early 2024, as market conditions dampened the volume of deals in most markets and asset classes.
The completed divestments include the Ransome’s Wharf site in London, the freehold 8-storey Cideco Industrial Complex in Singapore, as well as various strata units at Citilink Warehouse Complex, Cititech Industrial Building, Fortune Centre and Sunshine Plaza in Singapore.
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CDL had also announced the launch of The Orie, a joint project with Frasers Property and Sekisui House, in Toa Payoh with units priced from $1.28 million. The company has also divested its stake in Hong Leong City Centre, a mixed-use development in Suzhou, which is under contract and scheduled for completion in the current quarter.
According to Group CEO Sherman Kwek, the divestment of assets reflects the company’s focus on accelerating its capital recycling efforts. Despite the challenging market conditions, the company has managed to achieve good momentum and will continue to drive its divestment plans.
The company aims to optimize its capital management while aligning its portfolio with its strategic objectives and maximizing shareholder value. Completed divestment deals will help the company recycle its capital and fund future investments.
CDL’s shares closed at $5.05 on January 16, down 0.2% for the day and 20.97% down in the past year. The company has a track record of divesting non-core assets to focus on its core business and is expected to continue this strategy in the future.