{"id":31412,"date":"2016-10-24T11:22:18","date_gmt":"2016-10-24T04:22:18","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-exits-stake-in-luxury-condo\/"},"modified":"2016-10-24T11:32:02","modified_gmt":"2016-10-24T04:32:02","slug":"cdl-exits-stake-in-luxury-condo","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-exits-stake-in-luxury-condo\/","title":{"rendered":"CDL exits stake in luxury condo"},"content":{"rendered":"


\nNouvel 18 is a prime freehold project near Orchard Road. (Photo: CDL)
\nSunmaster 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 $977.6 million.
\nIn an SGX filing last week, CDL noted that the move enabled the company to unlock the value of the freehold property through its third Profit Participation Securities (PPS) platform.
\nThe property developer will not hold any interests in the ordinary shares and preference shares in Summervale following the completion of the transaction.
\nTrentwell Management, a CDL unit, will be appointed as the exclusive asset manager and marketing agent for five years with an option to extend to seven, to manage, lease, market and sell the units in Nouvel 18.
\nMeanwhile, Credit Suisse expects CDL to \u201crecord a profit and loss gain of about $27 million following the conclusion of the deal in Q4 2016\u201d.
\nSince the PPS investors are Singaporeans and companies fully-owned by Singaporeans, the sale of its stake will allow CDL to absolve itself of the Qualifying Certificate (QC) deadline in end-November 2016, and hence, avoid a $38 million charge, said Credit Suisse.
\nAs CDL will continue to manage Nouvel 18, further upside could also accrue through base annual management fees as well as an incentive fee after a performance benchmark is met, added the financial services company.
\n\u201cCDL\u2019s third PPS is in line with our strategy to grow our funds management business. It is also our first funds management platform where the asset is a purely high-end residential project,\u201d said its Executive Chairman Kwek Leng Beng.
\n\u201cThe success of our latest PPS initiative reflects investors\u2019 confidence in the tremendous value and potential of a rare, freehold product like Nouvel 18, as prices of Singapore\u2019s luxury residential segment show signs of bottoming out. There is a return of interest in Singapore\u2019s high-end properties due to their competitive pricing compared to other global cities and pent-up demand. Moreover, high-end residential supply remains limited in the medium and long term.\u201d
\nAccording to a JLL report, the average price of luxury prime residential property in Singapore fell by about 20 percent in Q4 2015 from 2011, while prices of prime properties in other global cities such as New York, London and Hong Kong have an 82 percent, 92 percent and 165 percent premium over Singapore.
\n\u00a0
\nRomesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email romesh@propertyguru.com.sg
\n
\nSource : proppertyguru.com.sg\/Property Market
\nRead more…CDL exits stake in luxury condo<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Nouvel 18 is a prime freehold project near Orchard Road. (Photo: CDL) Sunmaster Holdings, a...<\/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-31412","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\/p75ss1-8aE","jetpack-related-posts":[{"id":21668,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-seeks-pps-transaction-for-nouvel-18-worth-965m\/","url_meta":{"origin":31412,"position":0},"title":"CDL seeks PPS transaction for Nouvel 18 worth $965m","date":"July 29, 2016","format":false,"excerpt":"\r Nouvel 18 was completed almost two years ago, but has yet to be launched. Property 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. A\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":63408,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-to-benefit-from-property-upcycle-calls-for-review-of-qc-policy\/","url_meta":{"origin":31412,"position":1},"title":"CDL to benefit from property upcycle, calls for review of QC policy","date":"August 11, 2017","format":false,"excerpt":"\r CDL\u2019s Kwek said the property market appears to be getting stronger, but warned of dangers such as an upward spiral in land costs and housing prices. Property giant City Developments Limited (CDL) said it is well-poised to benefit from the property upcycle after several years of subdued market conditions\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":22622,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/cdl-reports-better-than-expected-quarterly-results\/","url_meta":{"origin":31412,"position":2},"title":"CDL reports better-than-expected quarterly results","date":"August 11, 2016","format":false,"excerpt":"\r Artist\u2019s impression of the Jewel@Buangkok development. 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(Photo: Christopher Chitty) Property developer City Developments Limited (CDL) has sold 81 of the 174 available units (47 percent) at its Gramercy\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":54064,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/new-futura-to-launch-amid-improved-market-sentiment\/","url_meta":{"origin":31412,"position":5},"title":"New Futura to launch amid improved market sentiment","date":"May 8, 2017","format":false,"excerpt":"\r View of CDL\u2019s soon-to-be completed New Futura condominium at Leonie Hill Road. Property developer City Developments Limited (CDL) is gearing up to launch its New Futura condominium at Leonie Hill Road in prime District 9 sometime in the second half of 2017. 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