You are here
CDL in preliminary discussions about Singapore Reit for UK commercial assets
PROPERTY developer City Developments Limited (CDL) is in preliminary discussions with banks and other parties about the possibility of establishing a real estate investment trust (Reit) with commercial assets in the United Kingdom, the mainboard-listed company said in an exchange filing on Friday.
If it materialises, the Reit will be listed on the main board of the Singapore Exchange.
"The properties to be injected into the Reit, the pipeline assets of the Reit, the size of any offering to be made in respect of units in the Reit, the timeframe for any such offering as well as the terms of any such offering and injection of properties into the Reit are currently under review and have not been finalised," CDL said in the filing.
An announcement will be made when there is a "material development", it added.
CDL is also asking shareholders to refrain from taking any action in respect of their shares or other securities in the company which may be prejudicial to their interests, as well as to exercise caution when dealing in the shares or other securities of the company.
CDL's group chief investment officer Frank Khoo was quoted in a Feb 27 report by The Business Times as saying that the potential size of the property portfolio for the Reit at flotation could be about S$1 billion, and that the Reit could happen this year.
The group currently owns Aldgate House and 125 Old Broad Street in Central London.
CDL's shares closed at S$8.28 on Friday, down 25 Singapore cents or 2.93 per cent from the previous day.