CDL posts S$736.8 million Q1 sales revenue in Singapore property development
It is ‘cautiously optimistic’ that business conditions will improve as interest rates stabilise
CITY Developments Limited (CDL) and its joint venture (JV) associates registered a sales revenue of S$736.8 million in Singapore for the first quarter ended March, up from a total sales value of S$213.2 million in the same period last year.
The strong sales performance with 429 units sold in the quarter was driven by the launch of Lumina Grand, a 512-unit executive condominium project in Bukit Batok West Avenue 5. Since the launch in January, 381 units, or 74 per cent of its total units, have been sold, said CDL in an operational update on Tuesday (May 21).
The group added that its launched projects – The Myst in Upper Bukit Timah Road, sold 240 units, or 59 per cent of its 408 units, while Tembusu Grand, a 638-unit JV project in Katong, sold 397 units or 62 per cent of its total units.
Two new residential projects are expected to be launched. The first is the 366-unit Union Square Residences, which is part of the group’s larger redevelopment project named Union Square, located at the site of the former Central Mall office and conservation shophouses, as well as Central Square. The second is the 348-unit project in Champions Way in Woodlands.
On overseas markets, 87 per cent of the 97-unit Treetops at Kenmore JV project in Brisbane has been sold. The group also said it has substantially sold its residential inventory in China.
“To date, Eling Palace is fully sold, while Hong Leong City Center and Hongqiao Royal Lake are 92 per cent and 91 per cent sold, respectively,” said CDL, adding that Hong Leong Technology Park Shenzhen has sold 427 units comprising apartments, office and retail units since the group acquired the project in March 2021.
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“The group continues to focus on driving sales for Hong Leong Technology Park Shenzhen, as well as developing its Suzhou High-Speed Railway New Town site acquired last year, with a planned launch of the residential component by Q1 2025.”
As at Mar 31, 2024, the committed occupancy for the group’s Singapore office portfolio softened to 91.1 per cent, largely due to tenant movement at South Beach. Its Singapore retail portfolio registered a committed occupancy of 97.7 per cent.
The committed occupancy rates of both portfolios are higher than the islandwide occupancy rates in the respective sectors, it noted.
On the hotel operations front, the group’s hotels achieved a global revenue per available room growth of 5.3 per cent to S$139.40 for Q1 2024, compared with S$132.40 in the same period last year. This was attributed to the strong growth in Australasia and Singapore.
As at end-March, its net gearing ratio stood at 63 per cent, and interest coverage ratio stood at 1.2 times due to rate hikes.
The group, however, highlighted a healthy liquidity position with cash and available undrawn committed bank facilities totalling S$3.7 billion.
CDL highlighted capital management as key to tackling real estate headwinds. “The group has accelerated its capital recycling plans and has earmarked some of its long-held strata assets for divestment,” said CDL, adding that it is “cautiously optimistic” business conditions will improve as interest rates stabilise.
As at 1.17 pm on Tuesday, shares of CDL were trading down 0.7 per cent or S$0.04 at S$5.76.
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