Cdl Buys Delfi Orchard En Bloc 439 Mil
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CDL’s City Towers collective sale nets $401.9 mil for each owner Singapore-listed real estate developer City Developments Ltd (CDL) has successfully bid for Delfi Orchard, a 11-storey strata-titled commercial building located at 402 Orchard Road. The collective sale tender for the freehold property was launched on April 18 by Savills Singapore, with a guide price of $438 million. The tender closed on May 27 and reportedly attracted a few bids. CDL emerged as the highest bidder with its wholly-owned subsidiary, CDL Draco Pte Ltd, offering $439 million for the property. This translates to about $3,346 per square foot per plot ratio (ppr) based on the existing gross floor area (GFA) of 131,186 sq ft.CDL already owns 84% or 126 of the 150 strata commercial and residential units at Delfi Orchard. With the acquisition of the remaining units, the company stands to unlock the full potential of this prime freehold asset, according to Sherman Kwek, CDL’s group CEO. He notes that with several redevelopment projects planned for the Orchard Road precinct, this is an exciting opportunity for the company to participate in the rejuvenation efforts.Read also: City Developments announces new launches, lower interest cover in 1QFY2024 updateDelfi Orchard is located at 402 Orchard Road, next to the Orchard Hotel Singapore and Claymore Connect mall. CDL had sold the hotel to CDL Hospitality Trust in 2006 under a 20-year lease, with an option to extend for another 75 years. However, the company still retains a freehold reversionary interest in both Orchard Hotel and Claymore Connect. CDL also owns Palais Renaissance, which is situated across Claymore Road. CDL may explore the potential to tap on the Urban Redevelopment Authority’s Strategic Development Incentive Scheme, according to the company.Delfi Orchard is the third successful collective sale in the Orchard Road area in recent years, following the sale of Tanglin Shopping Centre for $868 million ($2,769 ppr) in February 2022 and Ming Arcade for $172 million ($3,125 ppr) in September 2023. All three deals were brokered by Savills.CDL has greatly benefited from the collective sale of Tanglin Shopping Centre, as it owned 85 strata lots, including two carparks in the building prior to the sale. The sale was part of the company’s strategy to divest some of its legacy assets. Tanglin Shopping Centre was previously owned by King’s Tanglin Shopping, a subsidiary of Millennium & Copthorne, which is in turn, a subsidiary of CDL.Jeremy Lake, Savills Singapore’s managing director of investment sales & capital markets, points out that the sale of Delfi Orchard demonstrates the continuous interest of developers in prime development opportunities in the area. He adds that these developers are excited by the Urban Redevelopment Authority’s plans to rejuvenate and refresh Orchard Road. The collective sale was handled by Rajah & Tann, acting on behalf of the vendors. RELATED NEWSCity Developments announces new launches, lower interest cover in 1QFY2024 updateCDL to divest freehold strata units at Cititech Industrial Building and Citilink Warehouse Complex for $149 milCDL initiates share buyback programme with purchase of 954,000 ordinary sharesCDL’s City Towers collective sale nets $401.9 mil for each owner