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CDL unveils unique S$1.5 billion investment platform

  • Partners include Blackstone’s Tactical Opportunities Fund and CIMB
  • Leverages on strong cashflows of CDL’s upscale integrated development on Sentosa Cove

The Quayside Collection - CDL's exclusive integrated waterfront development on Sentosa Cove comprises the 5-star W Singapore – Sentosa Cove (hotel), Quayside Isle (retail) and The Residences at W Singapore – Sentosa Cove (residential).

Singapore, 16 December 2014 – City Developments Limited (CDL) has partnered with Blackstone’s Tactical Opportunities Fund and CIMB Bank Berhad, Labuan Offshore Branch to create a unique investment platform that will invest in the cashflows of CDL’s properties in Sentosa Cove, called the Quayside Collection. Through this transaction, a total of S$1.5 billion will be raised.

The Quayside Collection, an upscale integrated development on the resort island of Sentosa, south of Singapore, comprises three adjacent properties developed by CDL:

  • Hotel – The 5-star hotel W Singapore – Sentosa Cove
  • Retail – Quayside Isle, a waterfront F&B and retail property
  • Residential – Apartments of The Residences at W Singapore – Sentosa Cove

Announcing this today, CDL said the Profit Participating Security (PPS), as the investment instrument is called, will see the investors receive a fixed payout based on 5% interest per annum for a period of five years, in addition to a participation in the cashflows over the period that they hold the PPS.

The total aggregated value of PPS is S$750 million, comprising S$281 million subscribed by Astoria Holdings Limited, a wholly-owned subsidiary of CDL; Blackstone’s Tactical Opportunities Fund will invest S$367 million; and CIMB Bank will contribute S$102 million. Concurrently, DBS Bank Ltd. and Oversea-Chinese Banking Corporation Limited will provide S$750 million in value of senior loan facilities.

CDL Executive Chairman Mr Kwek Leng Beng said, “This offers investors a rare opportunity to participate in the cashflow from high-quality assets in Sentosa Cove. By leveraging on the operating strength and solid cashflows of the Quayside Collection, we will be able to build and deploy capital for our global plans.”

“There is no other cluster of upscale assets with similar waterfront living in Singapore. Quayside Collection’s exclusivity makes this cashflow participation platform all the more unique for investors. CDL remains a substantial investor in the PPS, reflecting our commitment and belief in our Sentosa Cove assets. Our partners share our vision of the opportunities this deal presents,” noted Mr Kwek.

Mr Stephen A. Schwarzman, Chairman, Co-Founder and CEO of Blackstone said, "At Quayside Collection in Sentosa, CDL has created a distinctive portfolio of assets. We are delighted to partner them in this transaction and further cement our long-term commitment to Singapore."

Tengku Dato’ Zafrul Tengku Abdul Aziz, Acting Group Chief Executive of CIMB Group added, “This is a unique investment opportunity and reinforces our strong relationship with CDL. We look forward to participating in the continued success of the Quayside Collection in Sentosa Cove.”

The PPS is the latest of a number of unique platforms which CDL has unveiled. Several years ago, it broadened the range of financial instruments it can use by issuing Sukuks or Islamic financing, and was also the first to launch a hotel-based real estate investment trust (or "H-REIT”). Both platforms proved successful and paved the way for others to follow. These finance-related platforms have helped, we believe, to enhance Singapore’s reputation as a major international financial centre, especially one that attracts fund and wealth management expertise.

The Quayside Collection has been operational for over two years and has enjoyed strong cashflows and recurring income. The 240-room W Singapore – Sentosa Cove hotel enjoys high occupancy rates with strong Revenue Per Available Room Rate (RevPAR). Quayside Isle, with breathtaking views of the marina, is fully tenanted. It is a popular lifestyle and dining hotspot for well-heeled residents and tourists alike.

The Residences at W Singapore – Sentosa Cove, is also enjoying good tenancy, over 50% committed occupancy since leasing began in earnest in Q2 2014. This is the only branded residence within the gated waterfront residential enclave and allows boats and yachts to be moored alongside its apartments, putting it in a very select class of waterfront residences around the world.

CDL will continue to manage the Quayside Collection.

The seven-storey W Singapore -Sentosa Cove hotel features 240 guestrooms.

The Residences at W Singapore – Sentosa Cove is the only branded residence within the gated waterfront residential enclave and allows boats and yachts to be moored alongside its apartments, putting it in a very select class of waterfront residences around the world.

The coveted waterfront residential development comprises 228 uber luxe apartments,