City Developments Limited (CDL) has agreed to divest Quayside Isle @ Sentosa Cove to a Singapore-based institutional buyer for $97.3 million or $2,205 per sq ft.
The divestment represents a significant premium of around 47% over the property’s book value of $66 million and an exit cap rate of 2.6%, although it is 12.3% lower than CDL's asking price of $111 million.
Quayside Isle was launched for sale in September this year via an expression of interest (EOI) exercise, which ended on Oct 15. The property was said to garner strong interest from local and international investors. The sale was secured after a “competitive process”.
The divestment brings CDL’s total divestments to $2 billion this year. This also marks CDL’s eighth asset sale contracted this year after South Beach, City Industrial Building and Piccadilly Galleria in Singapore. CDL also divested two non-core hotels, Millennium Hotel St. Louis and Comfort Inn Near Vail Beaver Creek, a multifamily residential property, 1250 Lakeside, in the US, and the Bespoke Hotel Osaka Shinsaibashi in Japan.
“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,” says Sherman Kwek, CDL’s group CEO.
“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,” he adds.
See also: Consortium comprising UOL Group awarded tender for Hougang Central at tender price of $1.5 bil
The transaction is expected to be completed in 1Q2026.
As at 11.11am, shares in CDL are traidng 5 cents higher or 0.68% up at $7.41.
