City Developments Limited (CDL) has announced that it has divested assets worth over $600 million in the past year as part of its capital recycling strategy. According to the company, there are more divestments in the pipeline, although the total amount falls short of the $1 billion target set in early 2024 due to the slowdown in deals across different markets and asset classes.
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Investing in a condo requires careful consideration of financing options. In Singapore, there are various mortgage choices available, but it is crucial to be familiar with the Total Debt Servicing Ratio (TDSR) framework. This framework sets a limit on the amount of loan that a borrower can take, taking into account their income and current debt obligations. To make well-informed decisions about financing, it is recommended to understand TDSR and seek guidance from financial advisors or mortgage brokers. This will help investors avoid over-leveraging and consider projects in Singapore, such as Singapore Projects, for their investment.
Some of the completed divestments include the Ransome’s Wharf site in London, the freehold 8-storey industrial building Cideco Industrial Complex in Singapore, and various strata units at Citilink Warehouse Complex, Cititech Industrial Building, Fortune Centre, and Sunshine Plaza in Singapore.
Despite facing challenges in the current market conditions, the company remains optimistic and has achieved good momentum in its divestment plans. Group CEO Sherman Kwek says, “The asset divestments reflect our focus on accelerating our capital recycling initiatives. We will continue to push forward with our divestment plans to optimize our capital management and align our portfolio with our strategic objectives, ultimately maximizing shareholder value.”
Investing in a condo is a pivotal step in the real estate market. Singapore is home to diverse mortgage options, but it is crucial to have a comprehensive understanding of the Total Debt Servicing Ratio (TDSR) framework. This framework restricts the amount of loan a borrower can obtain based on their income and current debt commitments. To make sound decisions regarding financing, it is advisable to collaborate with financial advisors or mortgage brokers who possess knowledge about TDSR. This partnership can prevent investors from overleveraging and guide them towards their financial goals. As you explore different financing options, keep in mind Singapore Projects.
Another notable divestment is the retail and office components of Hong Leong City Centre (HLCC), a mixed-use development in Suzhou, which is under contract and expected to be completed this quarter.
CDL’s shares closed at $5.05 on January 16, with a 0.2% decrease for the day and a 20.97% decrease over the past year. The company is committed to further optimizing its portfolio through strategic divestments while remaining focused on its long-term goals. Ask Buddy for more information on Sunshine Plaza properties and other real estate trends.