Singapore, 4 November 2020 – City Developments Limited (CDL) announced today the appointment of Deloitte & Touche Financial Advisory Services Pte. Ltd. (Deloitte) as its External Financial Advisor to assist in further evaluating and reviewing its 51.01% joint venture equity investment in Sincere Property Group (Sincere) based in China.

The CDL investment of an effective 51.01% stake in Sincere, completed in April 2020, is a strategic investment which provides CDL with a platform established over 26 years, comprising different asset classes across 18 cities in China. Sincere is ranked in China among the Top 100 Developers by China’s Real Estate Association and one of the Top 10 Business Park Developers and Operators.

As at 30 June 2020, CDL Group’s global asset portfolio amounted to S$23.8 billion, of which China accounted for 14%. Excluding Sincere, the Group’s China portfolio includes residences, office buildings, hotels, serviced apartments and retail malls.

The CDL Board has mandated this evaluation and review by Deloitte in view of the challenges relating to Sincere’s liquidity position following the outbreak of the pandemic and new measures to further tighten liquidity for real estate companies in China; the most recent being the ‘Three Red Lines’ policy.

Deloitte will evaluate the investment in Sincere in the light of the above challenges. Based on the findings – expected to be finalised before the end of 2020 – the Group will update shareholders on the proposed recommendations.