City Developments Limited (CDL) has entered into a sale and purchase agreement with a Singapore-based institutional buyer to divest Quayside Isle @ Sentosa Cove, its prime waterfront retail asset, for S$97.3 million, translating to approximately S$2,205 per square foot (psf). The agreed price represents a substantial 47% premium over the asset’s book value of S$66.0 million, underscoring the strong appeal of high-quality, income-generating waterfront properties. The transaction is expected to be completed in Q1 2026.

The sale follows a competitive Expression of Interest (EOI) exercise launched in September 2025, which closed on 15 October 2025. Quayside Isle attracted robust interest from both local and international investors, reflecting sustained demand for well-located lifestyle and retail assets with stable income profiles. CDL ultimately secured the deal after a keenly contested process.

Developed and managed by CDL, Quayside Isle forms part of the Group’s Quayside Collection precinct at Sentosa Cove. The integrated waterfront development was conceived alongside the 240-room W Singapore – Sentosa Cove hotel and The Residences at W Singapore Sentosa Cove, comprising 228 luxury homes. In 2020, CDL sold the hotel to its REIT associate, CDL Hospitality Trusts, while the unsold residential component continues to be held under a private investment platform.

CDL was awarded the highly sought-after marina quayside site — Sentosa Cove’s only commercial site — through a Government Land Sales (GLS) tender in July 2006, under the stringent two-envelope Concept and Price system. Completed in 2012, Quayside Isle sits on a 99-year leasehold tenure commencing from 31 October 2006, with approximately 80 years remaining.

Set against the tranquil marina at Sentosa Cove, one of Singapore’s most prestigious residential enclaves, Quayside Isle offers a distinctive blend of waterfront ambience and curated dining and lifestyle experiences. The development comprises about 44,121 square feet of net lettable area (NLA), enjoying scenic marina frontage and serving residents, yacht owners and visitors to the area. Over the years, it has established itself as a vibrant upscale destination with stable occupancy and a strong mix of long-term tenants.

Commenting on the divestment, Mr Sherman Kwek, Group Chief Executive Officer of CDL, said the Group’s original vision was to create a unique lifestyle precinct for the Sentosa Cove community. After more than a decade of value creation and asset maturation, CDL deemed it timely to monetise the investment. He noted that the sale, achieved at a 2.6% capitalisation rate, validates continued investor appetite for quality assets and aligns with CDL’s disciplined capital recycling strategy, allowing the Group to unlock value while maintaining a prudent and balanced capital structure.

The divestment of Quayside Isle marks CDL’s eighth asset sale in 2025, following transactions involving South Beach, City Industrial Building and Piccadilly Galleria in Singapore; two non-core hotels and a multifamily residential property in the United States; and more recently, Bespoke Hotel Osaka Shinsaibashi in Japan. Including this latest deal, CDL has secured approximately S$2 billion in divestments this year, surpassing total acquisitions of around S$1.7 billion, reinforcing the Group’s active portfolio optimisation and capital management strategy.