CDL Divests Quayside Isle in Sentosa Cove for S\$97.3 Million

Accelerating Capital Recycling and Unlocking Shareholder Value

City Developments Limited (CDL) has announced the divestment of Quayside Isle @ Sentosa Cove, its prime waterfront retail asset, for S\$97.3 million. The sale price equates to approximately S\$2,205 per square foot (psf), representing a substantial premium of 47% over its book value of S\$66.0 million. The transaction is expected to be completed in Q1 2026.

Key Points for Investors

• Significant Premium Over Book Value: The sale price of S\$97.3 million is about 47% higher than the asset’s book value, indicating CDL’s ability to unlock hidden value and realize strong returns from its property portfolio.
• Strong Market Validation: The asset received robust interest from both local and international investors during the EOI exercise in September–October 2025, demonstrating continued demand for high-quality, income-generating properties in Singapore.
• Prime Location & Unique Asset: Quayside Isle is the only dedicated commercial complex in Sentosa Cove, Singapore’s premier luxury residential enclave. The site was awarded to CDL through a highly competitive Government Land Sales tender in 2006, completed in 2012, and offers a remaining leasehold tenure of approximately 80 years.
• Stable Performance & Occupancy: Over the past decade, the property has evolved into a vibrant upscale destination with stable occupancy and a curated mix of long-term tenants, enhancing its attractiveness to investors.
• Portfolio Optimization & Capital Recycling: This is CDL’s eighth asset sale in 2025, part of a disciplined approach to capital recycling and portfolio optimization. The divestment aligns with CDL’s strategy to unlock capital from mature assets and reinvest in opportunities with higher growth potential.
• Exit at Attractive Cap Rate: CDL is exiting Quayside Isle at a 2.6% cap rate, reflecting strong asset performance and investor confidence.
• Divestment Track Record: With total divestments reaching around S\$2 billion in 2025 and outpacing acquisitions of S\$1.7 billion, CDL demonstrates prudent capital management and strengthens its balance sheet.
• Potential Share Price Impact: The substantial premium secured, strong demand for CDL assets, and disciplined capital recycling strategy are positive signals for shareholders. These factors may positively influence market perception and CDL’s share price, especially given the scale and premium achieved in the transaction.

Asset Details and Strategic Importance

Quayside Isle is part of CDL’s Quayside Collection precinct, alongside the 240-room W Singapore – Sentosa Cove hotel and The Residences at W Singapore Sentosa Cove, which features 228 luxury residences. The hotel was sold in 2020 to CDL Hospitality Trusts, while unsold residential units remain under a private investment platform.

The retail development comprises approximately 44,121 square feet of net lettable area, set against a scenic marina frontage. Its unique blend of waterfront charm, dining, and lifestyle options has cemented its status as a destination for residents, yacht owners, and visitors.

Management’s Perspective

“Our vision for the rare waterfront site was to create a distinctive lifestyle precinct for the Sentosa Cove community. Over the past decade, Quayside Isle has evolved into a vibrant upscale destination, achieving strong performance with stable occupancy and a curated mix of well-established, long-term tenants. Having nurtured the asset from concept to maturity, it is timely to crystallise the value created and allow it to flourish under new stewardship. The strong investor interest we received for Quayside Isle and the sale outcome reaffirms continued investor demand for high-quality, income-generating assets. This divestment, which sees us exiting at a 2.6% cap rate, aligns with our disciplined capital recycling focus, enabling us to unlock value while maintaining a prudent and balanced approach to capital management.”
– Sherman Kwek, Group CEO, CDL

Recent Divestment Activity

• South Beach, City Industrial Building, and Piccadilly Galleria in Singapore.
• Two non-core hotels in the US: Millennium Hotel St. Louis and Comfort Inn Near Vail Beaver Creek.
• Multifamily residential property in the US: 1250 Lakeside.
• Bespoke Hotel Osaka Shinsaibashi in Japan.

Including Quayside Isle, CDL has completed about S\$2 billion in divestments in 2025, surpassing acquisitions for the year.

Shareholder Considerations & Potential Price Sensitivity

• The marked premium over book value and successful capital recycling activities may be price sensitive, providing upside potential to CDL’s share price.
• The ability to secure strong divestment values in a competitive market reinforces CDL’s asset management credentials and could attract further investor interest.
• Continued focus on prudent capital management and portfolio optimization positions CDL for future growth while maintaining financial stability.

Contact & Further Information

For investor and media enquiries:
Belinda Lee, Head, Investor Relations & Corporate Communications: +65 6877 8315, [email protected]
Eunice Yang: +65 6877 8338, [email protected]
Jill Tan: +65 6877 8484, [email protected]
Jane Sng: +65 6877 8369, [email protected]

Follow CDL:
Instagram: @citydevelopments
LinkedIn: City Developments Limited
X (Twitter): @CityDevLtd

Disclaimer: This article is intended for informational purposes only. It does not constitute investment advice or an offer to buy or sell securities. Investors should conduct their own due diligence and consult with financial advisors before making investment decisions. The information is based on public disclosure and may be subject to change.

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