City Developments Limited (CDL) has signed a share sale agreement with IOI Properties Group Berhad (IOIPG) to divest its 50.1% stake in the iconic South Beach mixed-use development in Singapore. This transaction, based on a 100% property valuation of S$2.75 billion—approximately 3.0% above its latest valuation of S$2.67 billion (as of 31 December 2024)—will see IOIPG become the sole owner of the development.

The sale will be executed through the transfer of shares in the holding company, Scottsdale Properties Pte. Ltd. Based on CDL’s equity share and the consolidated net assets as of 30 April 2025, the sale consideration amounts to approximately S$834.2 million.

CDL and IOIPG have been joint venture partners in South Beach since 2011, having co-developed the 3.5-hectare site into one of Singapore’s most recognisable landmarks. Strategically located with direct links to Esplanade and City Hall MRT stations, the development comprises:

• South Beach Tower: Grade A office space

• JW Marriott Hotel Singapore South Beach: A 634-room luxury hotel

• South Beach Avenue & Quarter / NCO Club: Dining and lifestyle venues

• South Beach Residences: 190 luxury residential units (fully sold as of September 2021)

The site, awarded in 2007 via a Government Land Sales (GLS) tender using the two-envelope Concept and Price system, received its Temporary Occupation Permit in 2015/2016. It is held on a 99-year lease that began on 10 December 2007, with around 81 years remaining.

The transaction is expected to close by Q3 2025. Upon completion, IOIPG will assume full ownership of the commercial components of the development. This strategic move allows CDL to unlock value from a mature asset, in line with its capital recycling and portfolio optimisation strategies. For IOIPG, the acquisition strengthens its portfolio of recurring income assets, especially in Singapore’s Core Central Region (CCR) and CBD fringe, which continues to evolve.

Leadership Commentary

Mr Kwek Leng Beng, Executive Chairman of CDL, reflected on the partnership:
“South Beach was envisioned as a transformative development, blending modern and sustainable architecture with heritage conservation. It was a privilege to partner with the late Tan Sri Dato' Dr Lee Shin Cheng in creating this landmark. With the asset now mature, this divestment enables CDL to realise significant value while entrusting the future of South Beach to a long-standing and capable partner.”

Mr Sherman Kwek, CEO of CDL, added:
“This transaction marks a pivotal milestone in CDL’s capital recycling efforts. From securing the land in 2007 to navigating economic headwinds and creating a stabilised, high-performing asset, we have fulfilled our vision. The proceeds will help reduce our gearing and support our continued growth.”

Mr Lee Yeow Seng, CEO of IOIPG, said:
“South Beach is more than an investment—it represents a landmark achievement for IOIPG. Partnering with CDL and Mr Kwek Leng Beng’s visionary leadership helped shape this development into a world-class icon. This acquisition enhances our presence in Singapore, alongside our other strategic assets such as IOI Central Boulevard Towers and W Singapore – Marina View.”

Strategic Expansion for IOIPG

With this acquisition, IOIPG’s total net lettable area (NLA) in Singapore rises to 1.8 million sq ft. Across all markets—Malaysia, Singapore, and Xiamen—IOIPG’s property investment portfolio now spans 9.82 million sq ft of NLA, across five malls and six offices. As of 31 March 2025, the Group's total assets, including development and hospitality assets, reached RM47.93 billion.

This move aligns with IOIPG’s broader strategy of acquiring premium, income-generating assets in stable, mature markets such as Singapore. Despite global uncertainties, IOIPG remains committed to exploring value-creation opportunities, enhancing its offerings, and strengthening revenue streams as a leading regional property group.

Current Performance

As of 31 March 2025, South Beach’s commercial components continue to perform well, with committed occupancy rates of 92.4% for office space and 92.5% for retail units.

CDL’s Ongoing Presence

Following this divestment, CDL retains a substantial portfolio in Singapore, including approximately 2.6 million sq ft of commercial and retail space. It also continues to manage six hotels (2,608 rooms) under its Millennium Hotels and Resorts brand, and owns properties such as The St. Regis Singapore and The Singapore EDITION.