CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 OVERVIEW 20 21 HIGHLIGHTS OF THE YEAR 1ST QUARTER (January – March) • In January, the Group secured a prime 210,623 sq ft Government Land Sales (GLS) site at Jalan Tembusu for $768.0 million. Located near the upcoming Tanjong Katong MRT station, the Group and its JV partner MCL Land will develop the site into a 638-unit luxury condominium called Tembusu Grand. • CDL was ranked the fifth most sustainable corporation in the world and top real estate company globally in the 2022 Global 100 Most Sustainable Corporations in the World by Corporate Knights. It also maintained its listing on the Bloomberg Gender-Equality Index 2022 for the fifth consecutive year – one of five Singapore companies to be listed. • In February, the divestment of Millennium Hilton Seoul and its adjoining land site for KRW 1.1 trillion (approximately $1.25 billion) was completed. The Group recognised a pre-tax gain of $925.5 million in FY 2022. • The Group completed the acquisition of Central Square for $315 million in March. Subject to authorities’ approval, the property will be redeveloped alongside the Group’s Central Mall properties into an enlarged mixed-use development comprising office, retail, hospitality and residential. • In March, the Group and its JV partner purchased a freehold site in Brisbane’s Toowong riverside suburb for A$12 million (approximately $10.9 million), with plans to develop a Private Rented Sector (PRS) project with about 250 units. 2ND QUARTER (April – June) • In April, the Group completed the offmarket acquisition of a 179,007 sq ft site at 798 and 800 Upper Bukit Timah Road for $126.3 million. The site will be developed into a 408-unit project called The Myst. • Whistler Grand, the Group’s fully-sold 716-unit residential project at West Coast Vale obtained its Temporary Occupation Permit (TOP) in April. • In May, CDL and its JV partner MCL Land launched Piccadilly Grand, a 407-unit integrated development at Northumberland Road in the Farrer Park district. On its launch weekend, 315 units (77%) were sold at an Average Selling Price (ASP) of $2,150 psf. • The Group completed the distribution in specie of CDL Hospitality Trusts (CDLHT) Units to shareholders in May, which amounted to 20.2 cents per share1. Following the accounting deconsolidation of CDLHT from a subsidiary to an associate, the Group recognised a total pre-tax gain (inclusive of negative goodwill) amounting to $492.4 million for FY 2022. • The Group made its foray into the UK’s Purpose-Built Student Accommodation (PBSA) sector in June, with the acquisition of Infinity in Coventry for £59.2 million (approximately $96.3 million). Comprising 505 beds, the 19-storey building has an occupancy of 95%. • The Group acquired three newly-built PRS projects in Japan for ¥6.61 billion (approximately $66.9 million)– two in Yokohama (City Lux Tobe and LOC’s Yokohama Bayside) and one in Osaka (Gioia Namba) – totalling 271 units. This brings the Group’s Japan PRS portfolio to eight projects, all of which are completed and in operation. • In June, the Group completed Asset Enhancement Initiative (AEI) works at King’s Centre, which included the revamp and expansion of its main lobby and upgrading common areas such as lift lobbies, restrooms and common corridors. • In Australia, the Group partnered HThree City Australia Pte. Ltd. to acquire 330 Collins Street, a freehold Grade A commercial tower in Melbourne, for A$236 million (approximately $214.7 million). Located in the heart of Melbourne’s CBD, the acquisition of the 18-storey office tower marked the Group’s expansion into the Australian office sector. 3RD QUARTER (July – September) • In September, CDL successfully secured a 178,936 sq ft Executive Condominium (EC) site at Bukit Batok West Avenue 5 through a GLS tender for $336.1 million. Located near the upcoming Tengah Town and Jurong Lake District, the site will be developed into a 510-unit EC project. 4TH QUARTER (October – December) • The Group unveiled a new look for Palais Renaissance in October, following the completion of a major AEI totalling around $7 million. Beyond physical upgrades and a refresh of the tenant mix, CDL also introduced its proprietary CityNexus smart building app to enhance the daily operations of its tenants – CDL’s first retail property to feature this digital solution. • In October, CDL and its JV partner MCL Land launched Copen Grand, an EC in the upcoming Tengah Town, which is envisioned to be Singapore’s first smart and sustainable precinct. The 639-unit project sold 73% of its units on launch day and was fully sold out one month after its launch. • In Australia, the Group completed its purchase of a freehold site in Southbank, Melbourne for A$11.1 million (approximately $10.1 million) in November. The site will be developed into a PRS project with about 240 units. • In November, the Group completed the divestment of its interest in Tanglin Shopping Centre and Golden Mile Complex, recording a pre-tax gain of $256.3 million and $75.6 million respectively in FY 2022. • CDL, alongside 50 of the world’s largest corporations, signed the Action Declaration on Climate Policy Engagement launched at COP27 by Corporate Knights and the Global 100 Council, reaffirming its commitment towards supporting climate policy engagement aligned with the Paris Agreement. • In December, the Group enlarged its UK PBSA portfolio with the acquisition of five additional PBSA assets for £215 million (approximately $350 million). With an average age of less than three years and a portfolio comprising 1,863 beds, the five assets in Birmingham, Canterbury, Coventry, Leeds and Southampton boast excellent amenities and are located in prime catchment areas close to key transportation nodes and prominent universities. • CDL was recognised in the 2022 CDP A List for environmental leadership in climate change and water security initiatives in December, marking the fifth consecutive year CDL has received an ‘A’ score for climate change and the fourth year with an ‘A’ score for water security. • In Thailand, Jungceylon Shopping Center, the Group’s retail mall in Patong, Phuket, unveiled Phase 1 of its revamp. The remaining phases are targeted to complete by the end of 2023. Tembusu Grand I Singapore Artist’s Impression Central Mall and Central Square I Singapore Palais Reimagined: Launch of Palais Renaissance’s new look in October. From left to right: CDL Group CEO Mr Sherman Kwek, CDL Executive Chairman Mr Kwek Leng Beng, Mrs Cecilia Kwek and CDL Group COO Mr Kwek Eik Sheng 1 Based on $1.27 per CDLHT Unit on 25 May 2022.
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