Singapore developer City Developments (CDL) announced Tuesday that it has partnered with US investment giant Blackstone and Malaysia’s CIMB Bank to invest in the company’s three Sentosa Cove properties in a transaction valued at $1.5 billion.
The investment in the Quayside Collection – which comprises of the W Hotel Singapore, Residences at W Singapore and the retail property Quayside Isle – will be through Profit Participating Security (PPS), as the investment instrument is called, which will see the investors receive a fixed payout based on 5 percent interest per annum for a period of five year, in addition to a participation in the cashflow over the period that they hold the PPS.
In a press release, CDL noted that the total aggregated value of PPS is $750 million, comprising $281 million subscribed by CDL’s wholly-owned subsidiary Astoria Holdings; $367 million from Blackstone’s Tactical Opportunities Fund; and S$102 million from CIMB Bank. “Concurrently, DBS Bank and Oversea-Chinese Banking Corporation will provide $750 million in value of senior loan facilities,” it said.
“This offers investors a rare opportunity to participate in the cashflow from high-quality assets in Sentosa Cove. By leveraging on the operating strength and solid cashflows of the Quayside Collection, we will be able to build and deploy capital for our global plans,” CDL Executive Chairman Kwek Leng Beng said.
“CDL remains a substantial investor in the PPS, reflecting our commitment and belief in our Sentosa Cove assets. Our partners share our vision of the opportunities this deal presents,” he added.
Photo of Quayside Collection. Image Source: CDL
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
