CDL New Zealand unit to halt development works, close office due to lockdown

CITY Developments Limited's (CDL) New Zealand unit on Wednesday said it will stop all development works and shut its corporate office in response to the country's imminent lockdown.

The unit, CDL Investments New Zealand (CDI), added that sales activity would not be affected by the one-month lockdown, which takes effect from midnight on Wednesday. 

Land agents and other personnel will work remotely during the lockdown, CDI said, adding that it is confident all unconditional agreements for the sale of land it currently holds will be settled during the course of this year.

But the company noted: "Delays in regulatory site inspections and issuance of titles are expected given the imminent lockdown of non-essential services." 

It also said it has sufficient financial resources to maintain its business.

CDL subsidiary Millennium & Copthorne Hotels New Zealand, which owns a majority of New Zealand Exchange-listed CDI, had last week forecast about NZ$24 million (S$20.4 million) loss in hotel revenue for the first half of 2020.

CDL shares were up S$0.25 or 3.7 per cent at S$6.96 as at 1.06pm on Wednesday, after the announcement was made.