By Valerie Kor / EdgeProp Singapore | February 27, 2020 9:35 AM SGT
CDL executive chairman Kwek Leng Beng (right) and group CEO Sherman Kwek at the group’s 2019 results briefing on Feb 26 at M Hotel Singapore (Photo: City Developments Limited)
SINGAPORE (EDGEPROP) – City Developments (CDL) rounded off 4Q2019 with a strong performance of a 12.5% increase in profit to $87.7 million. Overall, the group delivered profit after tax and minority interests of $564.6 million in FY2019. Among positive contributions across its core business segments, local residential project launches constitute an outstanding portion, with a record number of six launches: Boulevard 88, Amber Park, Haus on Handy, Piermont Grand, Sengkang Grand Residences and Nouvel 18. Sales for the projects launched in 2018 have been steady as well. In total, CDL sold 1,554 residential units in Singapore with a sales value of $3.3 billion in 2019.
Next in the pipeline for the group are projects at Sims Drive and Irwell Bank Road, which will consist of 1,146 units targeted at mass to mid-tier segments. Following the enhancement of Republic Plaza, which achieved positive rental reversions, the group plans to redevelop Liang Court into an integrated riverfront development and revamp W Singapore and Palais Renaissance. Functional upgrades are also planned for City Industrial Building and Cideco Industrial Complex. In FY2019, CDL completed $2.3 billion worth of acquisitions and investments locally and in the key markets of the UK, Europe, China, Australia and Japan. On the hotel operations front, the privatisation of Millennium & Copthorne Hotels (M&C) in 2019 was a key highlight. The hotel group comprises 150 hotels globally.
However, following the outbreak of Covid-19, the group reported that the hospitality segment looks to be severely impacted in the following months. As such, CDL is exploring contingency plans to manage costs.
Original Article: https://www.edgeprop.sg/property-news/cdl%E2%80%99s-profit-rises-125-4q2019-after-bumper-year-six-residential-project-launches
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