CDL’s shares jump as it sells US multi-family asset for $186.8 million
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CDL said the sale of the 250-unit residential property in California allows it to lower gearing and redeploy capital.
PHOTO: CDL
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SINGAPORE - City Developments Limited (CDL) saw its shares rise by as much as 1.9 per cent, after news that it sold its multi-family asset in the United States.
CDL announced on Nov 20 that it has completed the divestment of the asset in Sunnyvale, California, for US$143.5 million (S$186.8 million) to a US-based institutional investor.
The sale was done through CDL’s wholly owned subsidiary Millennium & Copthorne Hotels.
The sale price is based on the property’s net lettable area of 201,750 sq ft, and had attracted strong interest from local property companies and real estate investment trusts, CDL said in its statement.
CDL group chief executive Sherman Kwek 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 multi-family space, this transaction enables us to reduce gearing and redeploy the capital to maximise shareholder returns.”
Investors reacted positively to the news, as CDL shares jumped as high as $7.36 in the morning, before closing 1.25 per cent higher at $7.31 on Nov 20.
The property at 1250 Lakeside Drive is part of the larger Silicon Valley area. It is also just minutes from the headquarters and offices of major tech companies like Apple, Google, Amazon and Nvidia.
It was redeveloped by CDL into a mixed-use project comprising the 250-unit residential property and an upcoming 263-room M Social Hotel Sunnyvale.
The residential property offers apartments ranging from studios to one- and two-bedroom units, and resort-style amenities, including a swimming pool, fitness centre, residents’ lounge and coworking spaces.
Meanwhile, M Social Hotel Sunnyvale is under development, with completion expected in the second half of 2026, and is to be operated by Millennium Hotels and Resorts.
Mr Kwek said: “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.”
He added that this exercise included the divestment of various hotels in locations such as South Korea, Britain and the US. It also included the collective sale of Tanglin Shopping Centre in Singapore as well as the deconsolidation of CDL Hospitality Trusts, all of which resulted in substantial gains for the group.
Following this divestment, the group’s global living sector portfolio comprises approximately 7,600 multi-family units and student accommodation beds across Singapore, Japan, Britain and Australia, with a total gross development value of approximately $3.7 billion.
