Archive | Hong Leong

World property M14Dec15 – CDL Singapore develops in Brisbane

CDL Singapore enters Brisbane apartments joint venture

Singapore-listed City Developments Ltd has re-entered the Australian residential sector, this time directly rather than through the 2 NZX-listed companies it controls, Millennium & Copthorne Hotels (NZ) Ltd & CDL Investments (NZ) Ltd.

CDL Singapore, part of the Hong Leong Group, has joined Australian developers Abacus Property Group & private company KPG Capital in a partnership to develop 2 30-storey towers on a 2733m² Merivale St site in Brisbane’s South Bank precinct. CDL & Abacus will jointly provide most of the equity funding via a preferred equity interest of about $A30 million each.

The 472 apartments will have an $A275 million gross development value. Site works have begun and both towers have been launched for presales.

CDL executive chairman Kwek Leng Beng said, “Our re-entry into Australia’s residential market is in line with CDL’s overseas expansion strategy, which we announced 2 years ago to supplement our existing Singapore operations. Brisbane’s residential market remains highly attractive due to its affordability when compared to other major cities in Australia. Both domestic & international buyers are looking to Brisbane for greater value & higher yield.”

Earlier story: World property Sun29Nov15 – CDL Singapore buys eighth London development site

Attribution: CDL.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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World property Sun29Nov15 – CDL Singapore buys eighth London development site

CDL of Singapore buys London brewery site

Singapore-listed City Developments Ltd has entered into a contract to buy the 8.9ha Stag Brewery site in London from global brewer AB InBev for £158 million. Completion is expected in the next week.

City Developments is the leading development company in the Hong Leong Group of Singapore, which also has controlling interests in NZX-listed Millennium & Copthorne Hotels (NZ) Ltd & land developer CDL Investments (NZ) Ltd.

The brewery deal follows closely behind CDL’s £85 million purchase of the 1.82ha Teddington Studios site, former home of Pinewood Film Studios, also in the south-west London borough of Richmond, and is CDL’s eighth UK purchase, taking its total acquisitions to £411 million.

Executive chairman Kwek Leng Beng said: “This latest acquisition is in line with our plans to step up CDL’s overseas diversification. Greater London is a key focus for our UK real estate platform, which we established in 2013. Greater London is seen as an attractive alternative to central London as buyers have increasingly sought more value for their money.”

“Richmond is one of the most desirable locations for living & working in London. Mortlake (the brewery address) is a 25-minute journey by train to central London and buyers are drawn to its picturesque river views & abundant greenery. The Stag Brewery site, widely accepted as one of the best development opportunities on the River Thames, is CDL’s eighth acquisition in the UK. We will continue to build traction and capitalise on property development & investment opportunities in the UK.”

The company’s other acquisitions have been in Knightsbridge (2), Belgravia, Chelsea, Croydon & Reading.

The Mortlake site has been a brewery since the 15th century, was one of London’s largest breweries in the 19th century and has been producing Budweiser under Anheuser-Busch InBev ownership. It has 33,000m² of non-heritage listed industrial buildings on it, and is near Chiswick Bridge, finishing line for the annual Oxford-Cambridge boat race.

As a redevelopment site, it has potential for 850 homes and has an adopted planning brief that promotes a mixed-used scheme which would accommodate a major residential development, new school, a hotel and other employment & leisure uses. At Teddington, CDL will develop the 1.82ha site into a luxurious riverside freehold condominium comprising 213 apartments, 6 houses, a refurbished weir cottage & 258 secure parking spaces. It’s scheduled for launch early next year.

Attribution: CDL.

Regular leads: Europe Real Estate, Mingtiandi, Planetizen

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City Dev increases net earnings 57%, says Singapore outlook brighter

City Developments Ltd, the main Singapore operating company of the Hong Leong Group headed by Kwek Leng Beng, increased June half revenue 11% to $S1.179 billion, pretax profit 115% to $S121 million, profit after tax & minorities 57% to $S77 million, earnings/share 53%% to S9.31c/share (fully diluted 50% to S9.12c/share).

Its pretax earnings from property development were unchanged at $S54 million on revenue down 5% to $S273 million, earnings from hotel operations rose 256% to $S50 million (from a $S30 million loss) on revenue up 20% to $S798 million, and earnings from rental properties fell 36% to $S16 million on revenue down 5% to $S90 million.

Net borrowings were cut 4% to $S4.1 billion, net gearing was cut from 94% to 88%, net asset backing rose from $S5.56/share in December to $S5.60/share. The group has $S9.5 billion of non-current assets & $S3.5 billion of current assets, including $S1.9 billion of development properties, and net assets up from $S4.6 billion in December to $S4.65 billion.

In Singapore, City Developments gave outlooks for the residential & office sectors, based on the Government’s revised gdp forecast, up from a 5.5-7.5% range to 8-9%. 

The company said the mood of the property market in the 2nd quarter was guarded & cautious. “Despite the improving economy, the positive sentiments still had not permeated down to the real estate sector. Thus we decided to defer the launching of some of our projects.”

The take-up rate of residential properties for the quarter 2004 was only 1298, more than 30% lower than in that quarter last year. However, City Developments said private residential property prices edged up 0.1% after 7 consecutive quarters of decline, and the market overhang had fallen 16% from a year ago.

On office, City Developments said office prices had edged up 0.3% after 3½ years of decline and rents rose 0.7% in the 2nd quarter of 2004.

It expected no major new office space to be built in 2004 or 2005, and expected a small improvement in both absorption & rents, especially for prime A grade, but didn’t expected a broad recovery until 2005.

Related story:

15 August 2004: Kwek & Saudi prince sell New York’s Plaza to Israeli tycoon

City Developments

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