Real estate giant City Developments (CDL) has announced that it has successfully divested assets worth more than $600 million in the past year, with several more deals in the works.
This figure falls slightly short of the company’s initial target of $1 billion, which was set in early 2024. CDL attributes this shortfall to a decrease in market activity across various markets and asset classes.
So far, the completed divestments include the Ransome’s Wharf site in London, the Cideco Industrial Complex in Singapore, and various strata units at Citilink Warehouse Complex, Cititech Industrial Building, Fortune Centre and Sunshine Plaza in Singapore.
CDL has also shared that the divestment of the retail and office components of its mixed-use development, Hong Leong City Center (HLCC) in Suzhou, is under contract and is expected to be completed this quarter.
According to group CEO Sherman Kwek, the divestments are part of the company’s efforts to accelerate its capital recycling initiatives. Despite the challenges posed by current market conditions, Kwek is pleased with the progress made so far.
He emphasizes that CDL will continue to push forward with its divestment plans in order to optimize its capital management and align its portfolio with its strategic goals. The company’s ultimate aim is to maximize shareholder value.
CDL’s shares closed at $5.05 on Jan 16, showing a decrease of 0.2% for the day and a decline of 20.97% over the past year.