In a quarterly update on business, City Developments (CDL) reports that the group together with joint venture partners have sold 95 units for $281 million during the 3Q2022 period. The pace of sales was slower in the quarter because the company had a small stock of unsold units.
But, during the period from September 30th, 2022 CDL had sold 802 units worth $1.9 billion less that the 1 382 units worth $2.5 billion in the same period one year earlier. This is due to the fact that many of the new projects that it launched have been sold to the highest extent in the past, and with Sengkang Grand Residences selling out in the third quarter of 2018.
The Hill @One-North brochure presents a perfect home for people looking for an oasis away from the fast-paced city life.
Following the 3Q2022 period, CDL launched Copen Grand Executive Condominium (in October). It is currently sold out. So, from September 30 until November 30, The company has sold 1 417 units, valued at $28. billion. However, sales have increased to 1,417 units for an estimated amount of $2.8 billion.
The company restocked its landbanks with a winning offer in the amount of $336.07 million to purchase a 178,936 square feet EC site in Bukit Batok West Avenue 5. This EC project will consist of 10 blocks of 12-13 levels with 500 units.
Within Australia, CDL recently completed The Marker in Melbourne, in which there are 84% out of the 198 units have been sold so far. The initial Private Rented Sector (PRS) development site located in the Melbourne’s Southbank is scheduled to be completed by November of 2022. The construction of the project is expected to start in 2Q2023 which will produce approximately 250 units.
CDL’s office portfolio has a committed occupancy of 94.3% as at Sept 30; Republic Plaza, the principal Grade A office of the Group building has 96.1% committed with a positive rental reversion rate of 5.9%.
The property group’s retail portfolio was in occupation in the range of 95.3% as at Sept 30. City Square Mall and Palais Renaissance had committed occupancy that were 98.2% and 100% respectively. The annual average footfall risen by 70% of pre-Cpvid levels by 3Q2022. Meanwhile, the average monthly sales of tenants have already surpassed pre-Covid levels.
The CDL statement noted that the two office buildings with a total of 125 Old Broad Street and Aldgate House profited from the stability of the London lease market for office space. The leasing for The Junction, a 665-unit PRS development located in Leeds is in progress and is expected to be completed during the current quarter.
In addition, the Group’s PRS portfolios in Osaka in Japan and Yokohama boasts an occupancy rate of over 95%.
CDL’s hotel portfolio has recouped in the last quarter, with Revenue Per Room (RevPAR) increasing by 88.9% y-o-y to $161.9. In the nine months prior to September 30, RevPAR for the portfolio climbed 108.3% to $127.7, with London and New York improving their RevPAR by 291.2% and 113.3% respectively.
The rate hikes have caused CDL to delay its IPO for its UK commercial REIT. “The extraordinary rate hikes that took place in 2022 have significantly impacted this IPO of REITs in Singapore as well as a host of scheduled IPOs as well as secondary fund-raising initiatives of REITs cancelled. With this market in turmoil however, the Group has decided to put the suspension of its IPO goals in their UK commercial properties until the market stabilizes,” the statement read.