CDL venture Sincere sees recovery in sales at Chengdu project

Singapore

CHINA-BASED property developer Sincere Property Group on Thursday posted 150 million yuan (S$30.6 million) in sales for the first day of its third phase launch of its TianFengHe Mansion project in Chengdu, Sichuan province in China.

Singapore property developer City Developments Limited (CDL) acquired a 51 per cent stake in Sincere Property for 4.39 billion yuan in April this year.

Sincere Property said it launched 540 units out of the project's 762 units. Some 430 units or about 80 per cent of the newly-launched units were sold leading up to Nov 25.

Based on latest confirmed sales, the average selling price of TianFengHe Mansion units in November was 8.7 per cent higher at 13,700 yuan per square metre (sq m), compared with 12,599 yuan per sq m for units sold in March 2020 when buyer sentiment was at its lowest.

Launched in December 2019, the TianFengHe Mansion project has an estimated saleable gross floor area (GFA) of 360,000 sq m and total sales value of up to 4.6 billion yuan.

Sincere Property also announced that it won a bid to operate more than 100,000 sq m of retail space in the upcoming Kunming Transportation Hub that will serve as a gateway linking the South-western province of Yunnan with the rest of Asia.

The group's subsidiary, Sincere Starlight Commercial Properties will operate and manage the retail space for 15 years starting from 2024.

The proposed hub is a large scale mixed development comprising a public transportation interchange, retail, office, hotel, residential apartments and car parks. It has a GFA of 608,800 sq m.

Sincere Property said the project will be a source of recurring income.

Earlier this month, CDL said it appointed Deloitte & Touche Financial Advisory Services as its external financial adviser to assist in further evaluating and reviewing its investment in Sincere Property. This came after CDL director Kwek Leng Peck resigned last month, citing disagreements with the board and management on the group's investment in Sincere Property, as well as its management of London-based unit, Millennium & Copthorne Hotels.

Shares of mainboard-listed CDL closed at S$7.84 on Thursday, down S$0.03 or 0.4 per cent.