CDL to invest S$5 billion, target S$6 billion in divestments under refreshed strategy - The Business Times
[SINGAPORE] Property giant City Developments Ltd (CDL) plans to deploy S$5 billion in growth capital and target S$6 billion in divestments across its portfolio over the next three years.
This is part of a “refreshed” road map to sharpen its strategic focus and improve long-term shareholder value.
Unveiling the outcome of its strategic review on Monday (Sep 28) morning, CDL said that its new “GET+” plan marks the group’s “next chapter of value creation, with clearer strategic priorities, active portfolio management, measurable financial targets and greater accountability”.
CDL shares fell nearly 5 per cent to S$7.85 in early trade on Monday, shortly after the new strategy was unveiled. The counter recovered slightly to S$7.87, down 4.7 per cent or S$0.39, as at 9.35 am.
Singapore will remain the principal market for CDL’s new investments. Of the S$5 billion in planned growth capital, 60 per cent is earmarked for Singapore, 30 per cent for China and Japan, and the remaining 10 per cent for other markets.
The investments will also be focused across four sectors: residential, commercial, hospitality and living.
These sectors and markets are where the group has established capabilities, local knowledge and opportunities to generate attractive risk-adjusted returns, noted CDL.
Meanwhile, the group will target S$6 billion in divestments as part of efforts to “crystallise embedded value and recycle capital” from mature, non-core or underperforming assets.
Commercial assets will account for 45 per cent of CDL’s targeted divestments, followed by hospitality assets at 30 per cent. Legacy residential and other assets will make up 20 per cent, with the remaining 5 per cent coming from the living segment.
In addition to the divestment proceeds, the group expects more than S$6 billion of projected cash inflows through to FY2029 from property development sales, supported by future cash collections from contracted sales and its existing development pipeline.
Hospitality will be a key area of focus under the refreshed strategy, said CDL. The group has a global hospitality portfolio of 165 hotels, including 88 owned hotels. Of these, 54 hotels – including two sets to open over the coming year – are directly held by CDL and valued at around S$8.6 billion.
CDL said that it would adopt “a tailored approach” for each asset in its owned hotel portfolio by retaining core assets, enhancing assets with further potential and divesting selected properties.
It is targeting a divestment of S$1.8 billion of its hotel properties through to FY2029.
Fund management will also become a more significant part of CDL’s capital model, said the property developer. The group is targeting S$10 billion in total AUM by FY2029, up from S$5 billion as at Jun 30, 2026.
To reach its target, CDL will establish a dedicated fund management entity, with an investment committee and leadership team that will be directly responsible for AUM growth and financial accountability.
The review, which was announced in February this year, comes after a public fallout between CDL’s group CEO Sherman Kwek and his father, executive chairman Kwek Leng Beng, over control of the company. The matter has since been resolved.
The younger Kwek said on Monday that the new strategy marks the “next chapter” of CDL’s value creation. The group’s “unwavering” focus will be on strengthening its balance sheet, improving capital productivity and building a higher-quality earnings base to maximise shareholder value, he added.
Shares of CDL ended 0.5 per cent or S$0.04 higher at S$8.26 on Friday.
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