As Singapore’s pioneer
property developer, CDL has weathered many economic storms
since its inception over 45 years ago. The Group maintains
a nimble and innovative approach to market changes, adapting
and responding to such challenges quickly and astutely.
With the uncertainty cast
by the ongoing global financial crisis, the Group was not
spared the same quagmire that has gripped world economies.
It continues to remain vigilant and flexible in its business
approach, employing a variety of strategies that will enhance
its capabilities, allowing it to emerge with strength when
the global economy recovers.
Even with the lacklustre
performance of the Singapore property market, CDL’s
key launches in 2008 were nevertheless met with success.
In June, 25 units in Phase
1 of Shelford Suites, a freehold 77-unit boutique development
nestled in the midst of a lush residential enclave off Dunearn
Road, were released for sale.
Anticipating a demand for
mass market developments, the Group launched Livia, a joint-venture
residential project with Hong Realty (Private) Limited and
Hong Leong Holdings Limited, located at Pasir Ris Grove
in July. Response to the 724-unit mass-market condominium
has been enthusiastic, with 80% of the 200 units released
under Phase 1 sold during the soft-launch. To-date, more
than 350 of the 440 units released in the 99-year leasehold
condominium have been sold.
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Launched
to resounding success, 80% of the released units
at Livia were sold during the soft-launch. |
In light of the deepening
global economic crisis and subdued property market, the
Group decided to hold back the launch of its new residential
projects in 2008. However, it proceeded with the construction
for The Arte at Thomson and The Quayside Collection at Sentosa
Cove, both of which were secured at relatively low land
and construction costs. By continuing to monitor the market
conditions closely and time its launches appropriately,
the Group is confident that when market sentiments improve
and when it decides to launch these projects, it will be
able to make good profits and book in more profits based
on the stage of construction at the time of sales.
While CDL’s future
residential icons are poised in the wings for launch, the
completion of its highly-anticipated iconic residences during
the year attracted much of the spotlight.
Redefining the Singapore
skyline with its sleek sculptural form is The Sail @ Marina
Bay. As the first completed residences in the new Downtown,
The Sail has truly brought to life the concept of “Live,
Work and Play” to the residents of its 1,111 units.
This architectural icon is jointly developed by CDL and
AIG Real Estate Global Investment Corp.
The recent completion of the
St. Regis Residences, on the other hand, heralded in a new
haute art of living, where a world of timeless elegance
and legendary hospitality is an everyday affair. Residents
of the 173 beautifully-appointed apartments in Singapore’s
first branded residence will enjoy the legendary bespoke
services offered by the adjoining six-star St. Regis Singapore
hotel. This landmark residence of unsurpassed luxury is
jointly developed by CDL, Hong Leong Holdings Limited and
TID Pte. Ltd..
Parc Emily, a 295-unit residence
located in the lush Mount Emily enclave, was also completed
in 2008. Jointly developed by CDL and TID Pte. Ltd., Parc
Emily is the first residence to be equipped with the twin-chute
pneumatic waste disposal system in Singapore.
Beyond shaping the skyline
with residential icons of the future, the Group has also
been adding vibrancy to the cityscape with the introduction
of new commercial complexes designed with environmental
sustainability in mind, refreshing retail experiences, as
well as the rejuvenation of existing properties.
On the commercial front,
CDL’s properties under development are progressing
well and will be added to the Group’s sizeable portfolio
of investment properties when they are completed. This includes
9 Tampines Grande that is targeted for completion by 2009.
A third of this modern office building has been leased out
to a reputable anchor tenant. Another commercial development
scheduled for completion in 2009 is 11 Tampines Concourse.
In September, CDL unveiled
the nine anchor tenants of its 11- storey City Square Mall
at a signing ceremony. The anchor tenants, including household
names like Metro, NTUC Fair- Price, Best Denki, as well
as Kopitiam and Banquet food courts, account for 197,000
square feet of retail space. Over 75% of the retail space
has been committed to-date.
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With
some 250 shops, the Group’s flagship 700,000
square feet City Square Mall will be one of Singapore’s
largest malls when it opens in the fourth quarter
of 2009. Strategically located in the Little India/Farrer
Park precinct, one of the top five tourist spots in
Singapore, the family-friendly Eco-Mall will be particularly
accessible to shoppers along the North- East MRT line
as it is directly connected to the Farrer Park MRT
Station.
Leading the way in illuminating Orchard
Road, CDL celebrated the completion of the facade
makeover of its upscale shopping mall Palais Renaissance
in December, with the unveiling of the world’s
first dancing lights facade. Featuring a double-skin
glass facade embedded with three-dimensional colour-changing
eco-friendly LED lights, the dancing lights will enliven
the nightscape and enhance the Orchard Road shopping
experience. Created by renowned design consultant
Kajima Design Asia, the lights are programmed to the
specially-choreographed “Music of Light”
concept that is the brainchild of award-winning architectural
lighting designer Mr Hiroyasu Shoji. The dramatic
new facade, along with the upgrading of the mall’s
interiors, reaffirms Palais’ position as a boutique
mall that offers a timeless combination of elegant
and luxurious fashion – for a pleasurable shopping
experience.
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The
rejuvenated facade of Palais Renaissance illuminates
Orchard Road with the world’s first dancing
lights. |
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As fine examples of environmentally-friendly
developments, both 9 Tampines Grande and City Square Mall
were awarded the BCA Green Mark Platinum, the highest tier
rating for green buildings, for their eco-friendly features.
In recognition of CDL’s leadership and commitment
towards environmentally sustainable development, CDL was
also conferred the inaugural BCA Green Mark Champion Award
by the Building and Construction Authority (BCA) in 2008.
In line with the Group’s
continuous review and evaluation of its existing asset portfolio,
CDL remains responsive to unlocking the value of its non-core
assets.
Through its wholly-owned
subsidiary, City Capital Corporation Pte Ltd, CDL entered
into a conditional Sale and Purchase Agreement with Pioneer
Panda Pte. Ltd. for the sale of Commerce Point for $180.7
million. The sale of the 999- year leasehold 19-storey office
building was completed on 3 July 2008.
Recognising the challenges
ahead, the Group took strategic steps to build on its competitiveness
and enhance its financial position to seize potential opportunities
at the right time.
In August, CDL entered into
a memorandum of understanding (MoU) with National University
of Singapore’s School of Design and Environment through
its Master of Science (Environmental Management) programme
for a joint research collaboration to develop innovative
features and solutions in the environmental aspects of property
development, building management and facilities management.
This agreement marks the first partnership between NUS and
a leading property developer in the area of environmental
management.
Yet another milestone was
achieved later in the same month, when CDL announced that
it would be issuing Singapore’s first Sukuk-ljarah
unsecured financing arrangement, under a proposed $1 billion
Islamic Multi-Currency Medium Term Notes (MTN) Programme
to tap new markets and investors. CIMB-GK Securities Pte
Ltd, a wholly-owned subsidiary of CIMB Group, was appointed
as the lead arranger for the programme.
This issuance marks a milestone
for Singapore as the city develops Islamic Finance as an
alternative mode for investment and fund raising. Beyond
adding another dimension to CDL’s financial strength
and further enhancing the Group’s war-chest, the Islamic
MTN programme is expected to raise CDL’s profile and
extend its reach amongst investors in the international
Islamic capital markets, allowing it to connect with an
alternative and fast-growing liquidity pool. Being a pioneer
of Singapore’s first Islamic MTN programme allowed
the Group to tap new investors via an alternative financing
stream and to enjoy a firstmover advantage.
The first issuance of $100,000,000
3.25 per cent. Islamic Trust Certificates due 2010 under
the Islamic MTN programme, through the Group’s wholly-owned
special purpose company, Citydev Nahdah Pte. Ltd., was done
on 22 January 2009.
With 102 hotels in 18 countries
worldwide, CDL’s London-listed hospitality arm, Millennium
& Copthorne Hotels plc (M&C) is amongst the world’s
fastest growing hotel companies. In line with its global
strategy, M&C welcomed many new additions to its growing
portfolio in 2008.
Leading the way was Asia
and the Middle East, with the opening of four new properties
in each region. The first two franchised hotels in China,
the Millennium Harbourview Hotel Xiamen and the Copthorne
Hotel Qingdao, were opened, along with the Grand Millennium
Beijing in China.
With a worldwide pipeline
of almost 5,200 hotel rooms across 17 hotels for 2008, M&C
will continue to expand in 2009.
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