SINGAPORE (THE BUSINESS TIMES) – City Developments (CDL) said it expects to make a “significant gain” from its sale of Tanglin Shopping Centre for $868 million in February.
The collective sale is subject to certain conditions being satisfied, including an order being obtained from the Strata Titles Boards for the sale of all units in the building, CDL said in an exchange filing on Wednesday (March 30).
It added that the completion date for the sale may fall in the financial year 2022 or 2023.
Shares of CDL rose 11 cents, or 1.4 per cent, to $7.99 on Wednesday.
The freehold Tanglin Shopping Centre was sold at $2,769 per square foot per plot ratio to Pacific Eagle Real Estate, a Singapore-based real estate investor and developer privately held by the Tanoto family, said its marketing agent Savills Singapore.
The aggregate strata area sold spans 21,229 sq m, which represents 60.2 per cent of the total strata area and 34.6 per cent of the total share value of Tanglin Shopping Centre.
The achieved price is about 10 per cent above the reserve price for the office, retail and car parking complex, in a fourth stab at a collective sale.
CDL’s board said in the filing it believes that the sale, which includes 85 strata lots including two carparks, will help the company recycle and reallocate its capital in line with the company’s overall strategy to divest some of its assets at a premium to net book value and/or valuation.
The sale also complements the company’s strategic review of its subsidiary Millennium & Copthorne Hotels after its delisting.
Millennium & Copthorne Hotels is the parent company of King’s Tanglin Shopping, the current owner of the mall.