CDL puts Quayside Isle @ Sentosa Cove mall up for sale at S$111 million
The expression of interest exercise for the mall will close on Oct 15
[SINGAPORE] City Developments Ltd (CDL) has put Quayside Isle @ Sentosa Cove up on the market for sale at S$111 million.
This translates to S$2,515 per square foot (psf) for Sentosa Cove’s only mall, said joint marketing agents Knight Frank and CBRE on Wednesday (Sep 3).
CDL chief investment officer Gerald Yong said: “Our planned divestment of Quayside Isle is aligned with our strategic focus on capital recycling and portfolio optimisation.”
He added: “The time is ripe to crystallise its value, following the divestment of W Singapore – Sentosa Cove to CDL Hospitality Trusts completed in 2020 and the positive response to the sale of residential units part of our Quayside Collection development.”
In April 2024, CDL sold 65 units in the 228-unit The Residences at W Singapore Sentosa Cove at an average selling price of S$1,780 psf.
This was a significantly lower price than the S$2,810 psf at which 20 units in the same project were transacted for, at average, in the 14 years since the project was launched in 2010.
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CDL group chief executive officer Sherman Kwek said last year that the group aims to divest at least S$600 million worth of assets this year to lower its “very high” gearing.
It has exceeded this target, with the sale of a 50.1 per cent stake in its South Beach mixed project to IOI Properties Group for S$834.2 million.
Quayside Isle @ Sentosa Cove’s “strong existing occupancy and resilient cash flow” will offer buyers immediate income security and potential upside through rental reversion, tenant repositioning, and gross floor area optimisation, subject to approval from the relevant authorities, said Michael Tay, deputy managing director and head of capital markets at CBRE Singapore.
Currently, more than 90 per cent of the mall is leased.
The property is expected to offer investors “resilient day-to-day patronage” and upside from Sentosa’s growing tourism and events traffic, said Melvin Chay, Knight Frank Singapore’s senior director of capital markets.
Singapore recorded 16.5 million tourist arrivals in 2024 and the number is projected to reach up to 18.5 million in 2025, data from the Singapore Tourism Board showed. Sentosa Development Corp’s website indicated that the island has more than 6,000 residents.
“Combined with Sentosa’s landmark initiatives such as RWS 2.0 and the Sentosa-Brani Master Plan, Quayside Isle is uniquely positioned for sustained rental and capital appreciation over the medium to long term,” Knight Frank and CBRE said.
Completed in 2012, the two-storey lifestyle mall faces the waterfront and spans a land area of approximately 89,683 square feet (sq ft) with a net lettable area of 44,121 sq ft.
Notable tenants include Common Man Coffee Roasters, Greenwood Fish Market, Jasons Deli and Quayside Isle Preparatory School.
The expression of interest exercise for the mall will close on Oct 15.
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