CDL Delays Plans To List UK Commercial Properties

CDL Delays Plans To List UK Commercial Properties on Singapore Bourse

SINGAPORE – City Developments Limited (CDL), a Singapore-based property developer and global real estate investor, has postponed its plans to list its UK commercial properties on the local stock exchange due to macroeconomic headwinds and heightened market volatility, reported Forbes on Thursday evening (1 December, SGT).

Controlled by billionaire Kwek Leng Beng, the conglomerate had intended to raise around £500 million (US$607 million) from its inaugural share sale of a portfolio of commercial properties – which including an office tower housing the London headquarters of global bank HSBC – that the developer had planned to inject into a real estate investment trust (REIT) which will be listed on the Singapore Exchange (SGX).

“The unprecedented interest rate hikes in 2022 have severely impacted the initial public offering (IPO) of REITs in Singapore, with several planned IPOs and secondary fund-raising exercises of REITs withdrawn,” announced CDL on Wednesday (30 November).

“Amid this challenging market, the group is placing a temporary pause on its IPO aspirations for its UK commercial properties until the market stabilises.”

Nonetheless, CDL stated that “the group is confident of weathering the storm and emerging stronger” despite the ongoing global economic uncertainty.

In fact, the group revealed that it has sufficient financial headroom to deleverage and carry out opportunistic investments after the sale of Millennium Hilton Seoul as well as the divestment of its interest in two commercial properties in Singapore, namely the Golden Mile Complex and the Tanglin Shopping Centre.

Furthermore, CDL has robust cash reserves and undrawn bank facilities totalling S$4 billion (US$2.9 billion) as at the end of September 2022.

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