{"id":21668,"date":"2016-07-29T14:54:41","date_gmt":"2016-07-29T07:54:41","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-seeks-pps-transaction-for-nouvel-18-worth-965m\/"},"modified":"2016-08-02T16:24:05","modified_gmt":"2016-08-02T09:24:05","slug":"cdl-seeks-pps-transaction-for-nouvel-18-worth-965m","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-seeks-pps-transaction-for-nouvel-18-worth-965m\/","title":{"rendered":"CDL seeks PPS transaction for Nouvel 18 worth $965m"},"content":{"rendered":"


\nNouvel 18 was completed almost two years ago, but has yet to be launched.
\nProperty developer City Developments Limited (CDL) is working on a Profit Participation Securities (PPS) scheme involving its Nouvel 18 condominium, with a deal size of $965 million, revealed Credit Suisse citing The Business Times.
\nA PPS platform is defined as a type of floating rate note which has its coupon linked to the profits of the issuer.
\nThis comes after CDL\u2019s recent purchase of Wing Tai\u2019s 50 percent stake in Summervale Properties, the developer of the luxury condo along Anderson Road, noted Credit Suisse. The $410.96 million acquisition, which was funded through the internal resources of CDL, brings its stake in the project to 100 percent.
\n\u201cWe believe the sale by Wing Tai was likely motivated by the impending Qualifying Certificate (QC) deadline for the project due at the end of November 2016,\u201d said Credit Suisse.
\nThe 156-unit freehold project achieved its temporary occupation permit (TOP) in November 2014, but has yet to be launched.
\nCredit Suisse noted that foreign developers who fail to complete and sell all units within two years from the TOP date will be subject to a QC extension fee at eight percent, 16 percent and 24 percent of the land cost, pro-rated on the percentage of unsold units for the first, second, third and subsequent years.
\nEven at estimated costs of $2,343 psf (versus $3,000 on average in the vicinity), CDL would still be able to make 15 percent margins, the financial services company said.
\nIt also believes the acquisition allows CDL greater flexibility and optionality, heading into the QC deadline.
\n\u201cIn addition to a potential public launch or bulk sales, CDL would now be able to optimise the value of the project via a \u201ccapital markets transaction\u201d. This would likely be conducted through its growing funds platform, and structured as a variant of its PPS transactions,\u201d said Credit Suisse.
\nIn May, The Business Times reported that CDL had appointed JLL to search for potential investors for its third PPS platform, involving a portfolio of 48 residential units in three residential projects, estimated at $350 million ($2,300 psf).
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, wrote this story. To contact him about this or other stories, email\u00a0romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…CDL seeks PPS transaction for Nouvel 18 worth 5m<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Nouvel 18 was completed almost two years ago, but has yet to be launched. Property...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-21668","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-5Du","jetpack-related-posts":[{"id":31412,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-exits-stake-in-luxury-condo\/","url_meta":{"origin":21668,"position":0},"title":"CDL exits stake in luxury condo","date":"October 24, 2016","format":false,"excerpt":"\r Nouvel 18 is a prime freehold project near Orchard Road. (Photo: CDL) Sunmaster Holdings, a unit of City Developments Limited (CDL), has entered into an agreement to exit its entire interest in Summervale Properties, the owner of Nouvel 18 \u2013 a 156-unit luxury residential development on Anderson Road, for\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":37418,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-to-benefit-from-improving-market-sentiment\/","url_meta":{"origin":21668,"position":1},"title":"CDL to benefit from improving market sentiment","date":"December 8, 2016","format":false,"excerpt":"\r CDL has the largest available land bank and unsold inventory, with an estimated 2,909 units worth $5.8 billion. Improving sentiment in the housing market will likely benefit City Developments Limited (CDL), as it remains the developer with the most available inventory, with much of its land bank purchased at\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8203,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-respite-from-mounting-extension-charges-for-developers\/","url_meta":{"origin":21668,"position":2},"title":"No respite from mounting extension charges for developers","date":"March 3, 2016","format":false,"excerpt":"\r Luxury apartments in the Orchard area. (Photo: Cheryl Marie Tay) Property developers forked out $24.9 million in extension fees last year for failing to dispose of all the residential units in their developments within the mandated period, reported The Straits Times. While this is lower than the $29.98 million\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":63604,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/smooth-transition-expected-at-cdl-following-ceos-resignation\/","url_meta":{"origin":21668,"position":3},"title":"Smooth transition expected at CDL following CEO\u2019s resignation","date":"August 14, 2017","format":false,"excerpt":"\r CDL CEO Mr Grant Kelley. Grant L. Kelley, the CEO of Singapore\u2019s second-largest developer CDL, has resigned after serving more than 3.5 years, citing personal reasons. The announcement was made during CDL\u2019s results briefing last Friday (11 August). \u00a0 Kelley intends to return to Australia to become the new\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":46021,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdls-kwek-worst-not-over-for-property-market\/","url_meta":{"origin":21668,"position":4},"title":"CDL\u2019s Kwek: Worst not over for property market","date":"February 24, 2017","format":false,"excerpt":"\r CDL\u2019s chief thinks it will take months before property prices begin to recover. Singapore\u2019s real estate market is still struggling, with home prices falling for the third year in 2016 due mainly to the government\u2019s cooling measures, according to City Developments Limited\u2019s (CDL) Executive Chairman, Kwek Leng Beng. \u201cI\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":41981,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/large-developer-stocks-to-benefit-from-a-home-price-rebound\/","url_meta":{"origin":21668,"position":5},"title":"Large developer stocks to benefit from a home price rebound","date":"January 26, 2017","format":false,"excerpt":"\r Analysts expect some announcement with regards to the property cooling measures at the upcoming budget speech. With home prices set to make a comeback, analysts expect the government to signal its intention to review the property cooling measures during the budget speech in February, which could, in turn, boost\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/21668"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=21668"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/21668\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=21668"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=21668"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=21668"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}