CDL reported to have filed for S$940m S-Reit IPO

Published Thu, Jun 3, 2021 · 06:07 PM

CITY Developments Limited (CDL) has applied for an initial public offering (IPO) of a real estate investment trust (Reit), which could raise some £500 million (S$940 million) on the Singapore Exchange, Bloomberg has reported.

The Reit, which aims to list in Q3, will have a portfolio size of about £1.8 billion, sources told Bloomberg on Thursday.

Bloomberg noted that a CDL representative declined comment.

Earlier in May, sources told Bloomberg that Qatar Investment Authority (QIA) may inject HSBC Holdings’ London headquarters building into a UK commercial property Reit to be listed by CDL in Singapore, possibly as early as Q3.

CDL has two predominantly office properties in London that could be injected into the UK Reit: 125 Old Broad Street and Aldgate House. These were acquired in 2018 for £385 million and £183 million, respectively.

The potential deal would boost the value of CDL’s portfolio to £1.8 billion from £600 million. The IPO, denominated in sterling, would only be the second such offering in Singapore.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

VIEW ALL

QIA and CDL did not comment on the matter, according to Bloomberg.

In 2020, CDL’s massive S$1.78 billion impairment on Sincere Property Group, its joint venture in China, contributed to a full-year net loss of S$1.92 billion.

While the group saw improvement across its core business segments in Q1 this year, the prolonged pandemic remains a concern as it continues to adversely impact operations, CDL said in an update last month.

The group and its JV associates sold 319 units with a total sales value of S$513.6 million in Q1, a 72 per cent increase from a year ago. The sales in the quarter were spread across various property categories.

CDL shares closed up S$0.12 or 1.6 per cent higher at S$7.83 on Thursday.