City Developments announced on Tuesday that it had successfully divested over $600 million worth of assets last year as part of its capital recycling strategy. This figure fell short of the company’s initial goal of $1 billion, which had been announced in early 2024. The decrease in deals across most markets and asset classes contributed to the lower total.
Among the divestments completed were the Ransome’s Wharf site in London, the freehold 8-storey industrial building Cideco Industrial Complex in Singapore, and strata units at Citilink Warehouse Complex, Cititech Industrial Building, Fortune Centre and Sunshine Plaza in Singapore.
CDL-Frasers Property-Sekisui House also launched The Orie, a residential project in Toa Payoh with prices starting from $1.28 million.
One prominent divestment in the works is the Hong Leong City Centre (HLCC), a mixed-use development in Suzhou. The retail and office components of HLCC are currently under contract and are expected to be completed this quarter.
According to group CEO Sherman Kwek, the asset divestments showcase CDL’s commitment to accelerating its capital recycling initiatives. He also mentioned the challenging market conditions that have made divestments more difficult, but noted that the company has still achieved good momentum. Kwek also stated that CDL will continue to push forward with its divestment plans, with the aim of optimizing its capital management and aligning its portfolio with its strategic objectives, in order to maximize shareholder value.
CDL shares closed at $5.05 on Jan 16, down 0.2% for the day and down 20.97% in the past one year.