City Developments’ (CDL) wholly-owned subsidiary, Millennium & Copthorne Hotels, has completed the divestment of a multi-family residential asset in the US for US$143.5 million ($186.8 million) to a US-based institutional investor, according to a Nov 20 bourse filing.
The sale price for 1250 Lakeside Drive in Sunnyvale, California — part of the larger Silicon Valley area — is based on its net lettable area of 201,750 sq ft.
The property was launched for sale in May via an expression of interest (EOI) marketed by Colliers USA that closed in July. The group entered into the transaction with the buyer in October. According to CDL, the EOI attracted “strong interest” from local property companies and REITs.
The property is just minutes from the headquarters and offices of major tech companies like Apple, Google, Amazon and Nvidia.
Formerly the site of Four Points by Sheraton Sunnyvale, the group redeveloped the 385,000 sq ft freehold site into a mixed-use project comprising the 250-unit residential property (1250 Lakeside) and the upcoming 263-room M Social Hotel Sunnyvale.
Completed in 2021, 1250 Lakeside offers apartments ranging from studios to one- and two-bedroom units.
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Adjacent to 1250 Lakeside, the US$118 million M Social Hotel Sunnyvale is being developed with completion expected in 2H2026.
CDL group CEO Sherman Kwek says the sale of the “non-core, standalone asset” in the US with “limited operational scale” in the multi-family space “enables [CDL] to reduce gearing and redeploy the capital to maximise shareholder returns”.
“Since privatising Millennium & Copthorne Hotels in 2019, we have gradually adopted a more agile approach to optimise its portfolio, unlocking value from non-core and mature assets, enhancing financial flexibility and driving harmonisation,” adds Kwek in a statement. “This includes the divestment of various hotels in locations such as South Korea, the UK and the US, the collective sale of Tanglin Shopping Centre in Singapore as well as the deconsolidation of CDL Hospitality Trusts, which all resulted in substantial gains for the group.”
See also: CDL divests assets worth more than $600 million in 2024
Following this divestment, the group’s global living sector portfolio comprises approximately 7,600 multi-family units and student accommodation beds across Singapore, Japan, the UK and Australia, with a total gross development value (GDV) of approximately $3.7 billion.
CDL shares closed 2 cents higher, or 0.28% up, at $7.22 on Nov 20. CDL shares are up some 41% year to date.
