CDL said to have inked deal to sell Quayside Isle @ Sentosa Cove for S$97.3 million

[SINGAPORE] City Developments Ltd (CDL) is understood to have entered into a deal to sell its Quayside Isle @ Sentosa Cove property for S$97.3 million, reflecting S$2,205 per square foot on a net lettable area of 44,121 square feet (sq ft).

The two-storey waterfront lifestyle mall is on an 89,683 sq ft site with about 80 years’ balance lease. The site is zoned commercial under the Urban Redevelopment Authority’s Master Plan 2025.

The buyer is understood to be an entity owned by Patrick Kho, the former group managing director of Lian Huat Group.

Quayside Isle was completed by CDL in 2012 alongside the W Singapore – Sentosa Cove hotel and The Residences at W Singapore Sentosa Cove. In 2020, the group completed the sale of W Singapore – Sentosa Cove to CDL Hospitality Trusts .

CDL’s sale of Quayside Isle, which is expected to be completed next year, is in line with the group’s capital recycling and portfolio optimisation efforts.

In early December, CDL announced that it had secured about S$1.9 billion in contracted divestments in the year to date, strengthening its capital position and optimising its portfolio.

These divestments include the Bespoke Hotel Osaka Shinsaibashi in Japan; a 250-unit multifamily asset in Sunnyvale, California, in the US; and in Singapore, the Piccadilly Galleria and a 50.1 per cent stake in the South Beach project’s commercial components (comprising offices, retail space and JW Marriott Hotel Singapore South Beach).

Kho previously held a stake in Lian Huat Group’s parent, Lian Keng Enterprises (LKE). However, a family feud resulted in his stepbrother Kho Choon Keng, also known as CK Kho, applying to have LKE wound up.

In July 2024, the High Court issued an order for LKE to be wound up, but granted a 30-day stay to allow the shareholders to reach a settlement.

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Under the settlement, CK Kho bought out the shares of Patrick Kho, his sister Patricia Kho, and their mother, Saw Gek Hua.

Thus, CK Kho became the sole owner of LKE in March this year.

CDL appointed Knight Frank and CBRE for the sale of Quayside Isle; the two property consulting groups announced an expression of interest exercise in September.

At the time, the property was more than 90 per cent leased. Notable tenants there include Common Man Coffee Roasters, Greenwood Fish Market, Jasons Deli and Quayside Isle Preparatory School.

In their release in September, Knight Frank and CBRE also highlighted three “resilient catchment streams” for Quayside Isle: stable daily patronage from the affluent residents in Sentosa Cove, a steady inflow of local and international visitors to Sentosa, and event-driven visitation from world-class events such as the Singapore Yacht Show at ONE°15 Marina, international regattas, as well as golf tournaments at Sentosa Golf Club.