According to the Singapore Government, City Development Ltd (CDL) rate last year in $146,6 million but now its earns grow up 10,4% to $161,8 million. This figure was assessed for 3Q2018 ended September. From $863,8 million the previous year rose 17,7% to $1,02 billion this year.
The change was due to higher revenue and earning recognized from the property development sales in Singapore. YTD September 2018, the group and its joint venture associates sold 787 units worth $1,56 billion in sale values.
Artist's impression of the cantilevered gym at the clubhouse of Whistler Grand (Photo Credit: CDL)
The 716-unit Whistler Grand by CDL was latest launched in West Coast Vale. On Nov 3, 160 units out of 240 released were sold in the first weekend at the average price of $1,380psf. According to CDL, Revenue was further propelled by the full recognition of the Criterion executive condominium (EC) which contained Temporary Occupation Permit in 1Q2018.
As at end September, the 124-uni New Futura is 84% sold (Photo Credit: CDL)
The 124-unit New Futura at Leonie Hill road had sold since January launch with the average price was over $3,500 psf. At 10 Tampines Avenue Road, the 861-unit The Tapestry was launched in 1Q2018, 544 units were sold to date at the average price of $1,350 psf. South Beach Residences Group's 190-unit luxury residences in a joint venture with IOI Group, previewed in September. 12 out of the 50 units released have been sold in date. This figure consists on the 6,728 sqf penhouse which fetched $26 million ($3,864 psf).
CDL Group has three projects ready for launch in 1H2019 which is the Amber Park with 592 new units including a new 188-unit project on the Handy road land site and 820 - unit EC development at Sumang Walk that is likely to be only EC launch in 2019.
Not only investigated in Singapore Market but CDL has a take care with foreign Market. In China, Phase 2 of Hong Leong City Center (HLCC) in Suzhou was completed in 1H2018. CDL and its joint venture associates sold 193 unit and 16 villas in the development as at end September, with a total sales value of RMB979.44 million ($195 million).
In Japan, the 160-unit Park Court Aoyama The Tower in central Tokyo was completed in 1H2018. Revenue was recognized for 140 units that have been handed over to buyers as CDL has a 20% interest in the project.
In London, Uk the group acquired two prime freeholds to expanding its recurring income base. The first project is Aldgate House - located beside Aldgate Underground Station and adjacent to the financial district, for £183 million ($328 million) in September. The second is 125 Old Broad Street, the former home of the London Stock Exchange for £385 million (approximately S$687 million) in October. With the location in the Financial District and five minutes to walk in Liverpool Street Station and several Underground Stations. Both projects are currently under-rented and have seen positive rental reversions.
Another project in China Market is the office block in Yaojiang International complex belong in Shanghai's prime North Bund Business District is expected completion by end 2018. With RMB 148 million ($30 million) invested for the office block. Along master lease agreement has been signed with District, a leading co-working company in China that CDL has an equity stake in.
CDL's net gearing ratio stood at 23%, with $2.9 million in cash reserves and interest cover of 16.6 times at end September.
Kwek Leng Beng, executive chairman of CDL said “Given the rapidly evolving business landscape, our diversified business in terms of product, sector and geography has helped us to weather headwinds that may impact any specific sector. While Singapore will always remain as our core focus, we will continue to explore opportunities both domestically and overseas to diversify, enhance earnings and maximize returns for shareholders.”
Group CEO Sherman Kwek adds: “Looking ahead, we remain focused on growing our development pipeline and about blank recurring income portfolio through a strategic and disciplined approach.”