May 16, 2019 (China Knowledge) - Singaporean property developer City Developments (CDL) announced transactions amounting nearly USD 1 bln with China’s Sincere Property Group. This is part of CDL’s growth strategy in the mainland real estate market.
CDL has announced to purchase roughly 24% stake in Sincere Property for RMB 5.5 bln. This deal will be financed by loans and equity. “It is a a rare opportunity to acquire a meaningful stake in an established platform at an attractive valuation,” said CDL Group CEO Sherman Kwek.
According to the Chairman of Sincere Property, Wu Xu, the partnership allows them to tap on CBL’s experience and networks to jointly explore fund management activities.
On the top of that, CDL will purchase from Sincere Group a 70% stake in Shanghai Hongqiao Sincere Centre, a prime commercial property located at Shanghai’s Hongqiao Central Business District at RMB 1.2 bln. This purchase will result in CDL’s global portfolio allocation in China to 15% from 9%, second only to Singapore’s 46%.
Once both companies have settled the transactions by the end of the year, Sincere and CDL’s Chinese operation will merge to develop properties in leading mainland cities.
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