IOIPG has acquired the commercial components of South Beach, Singapore through a share sale agreement with CDL.
PETALING JAYA: IOI Properties Group Bhd (IOIPG) and City Developments Limited (CDL) have entered into a share sale agreement for their joint venture South Beach mixed-use integrated development. Under this agreement, IOIPG will acquire CDL’s 50.1% interest in the development, based on an agreed property value of RM9.06bil (SGD2.75bil) on a 100% interest basis, which represents an approximately 3.0% premium over the latest valuation of RM8.8bil (SGD2.67bil) as at Dec 31, 2024.
The transaction will be executed via a share sale in the holding company Scottsdale Properties Pte Ltd. Based on CDL’s proportionate 50.1% share of its consolidated net assets as at April 30, 2025, the estimated sale consideration is RM2.75bil (SGD834.2mil).
Upon completion of the transaction expected by Q3 2025, IOIPG will gain full ownership of South Beach’s commercial components. The strata-titled residential component, South Beach Residences, has been fully sold since September 2021.
Directly connected to Esplanade MRT station and City Hall MRT Interchange, the development features Grade A office space (South Beach Tower), a 634-room JW Marriott Hotel Singapore South Beach, restaurants and cafes (South Beach Avenue and Quarter, as well as the NCO Club) and South Beach Residences comprising 190 luxury apartments and penthouses.
“The South Beach development holds immense significance for IOIPG. To describe it as an iconic development which we are honoured to have been a part of, is an understatement. This development presented us with the opportunity to change the skyline of Singapore while building a good relationship with CDL, a leader in the real estate industry,” said IOIPG’s group chief executive officer Lee Yeow Seng.
CDL group chief executive officer Sherman Kwek said the decade-long partnership, dated back to 2011, represented the group’s shared commitment and fruitful partnership with IOIPG.
“This transaction gives a strong boost to CDL’s efforts to accelerate capital recycling so as to reduce gearing and redeploy capital. We will continue to unlock value across our diversified portfolio and pursue future growth opportunities,” Kwek added.
Stay ahead of the crowd and enjoy fresh insights on real estate, property development and lifestyle trends when you subscribe to our newsletter and follow us on social media.
