|A YEAR OF HIGHS FOR CDL
As Singapore’s leading developer, CDL has reinforced
its position by marking 2006 with an outstanding record
Having anticipated the surge in demand for high-end,
luxury properties and to capture the upswing in the property
market, CDL swiftly responded to satisfy the desires of this
affluent segment with all four launches this year targeting at
the high-end market. The success of this astute strategy in
capitalising on the niche market has reaped amazing results
for the group.
Although CDL sold fewer homes this year, 1,337 units compared
to 2,071 units in 2005, its sales value of $2.77 billion surpassed
2005’s $1.66 billion – a staggering increase of 67%!
|HIGH LIFE – REDEFINED
In yet another pioneering move, CDL kick started its
launches in June this year by being the first developer to introduce
Singapore’s first branded residential property, St. Regis
Residences. Redefining the concept of luxury in Singapore,
residents will be able to luxuriate in a sanctuary that exemplifies
quality, style and sophistication down to the smallest detail
and the privilege of access to professional à la carte services
from the adjoining world-class St. Regis Hotel (at a fee).
|St. Regis Residences, Singapore’s first branded residences, the pinnacle of luxury and refinement
Causing a furore during the launch, media and buyers were
invited to view the highly anticipated, elegantly-appointed
Show Suite which was designed to perfection at a cost of $6
million, making it possibly the most expensive in Singapore. St.
Regis Residences also created a sensation as it was the first to
set a new benchmark price of over $3,000 per square foot.
Residences @ Evelyn which boasts the best views in the
Newton vicinity was successfully launched shortly after. Response
to this prime 208-unit freehold development was very
positive and sales are progressing well with over 93% sold.
Hot on its heels was the launch of The Oceanfront @
Sentosa Cove in July, CDL’s first imprint into Singapore’s prized
gated community, Sentosa Cove. Buyers were smitten by the
charming waterfront lifestyle and the panoramic views of this resort-like project, built majestically at 15-storeys tall, the
highest allowed at Sentosa Cove. Sited at the mouth of the
marina, this exclusive 264-unit iconic waterfront marvel will
capture the imagination of all who sail past. The Oceanfront
@ Sentosa Cove was a phenomenal success having sold
90% within a week.
|Live the high life at The Oceanfront @ Sentosa Cove, the ultimate waterfront living paradise.
To top off the launches of the year, Tribeca by the waterfront,
CDL’s hip and chic freehold 30-storey development
is poised to enliven the Singapore River. Located along Kim Seng
Road, Tribeca is the perfect oasis for the discerning. With an
enthusiastic response from buyers, about 75% has been sold.
|Enjoy panoramic views of the Singapore River at the trendy Tribeca.
|PAVING THE HIGH-WAY FOR THE FUTURE
As the proxy to the Singapore property market, CDL owns
one of the most valuable land banks amongst private property
developers in Singapore. However, it has kept a close
watch to secure strategic opportunities to add further value
to its land bank. Keeping steadfast to its strategy of paying a
competitive deal for all its acquisitions, CDL has attained many
solid purchases this year.
CDL’s key acquisition in 2006 is no doubt the highly-coveted
The Quayside Collection, which is the only commercial
site providing both entertainment and leisure amenities at
Sentosa Cove. It was awarded to CDL based not only on its
offer price of $235.75 million but other factors including design
and concept, tourism appeal as well as the strength of
the prospective lessee and operator.
The Quayside Collection will feature a seven-storey, 320-
room five-star waterfront hotel, a three-storey waterfront
commercial and retail site and a six-storey condominium development
comprising 223 apartments. The condominium is
expected to be launched in 2007, and the entire development
is estimated to be completed by mid-2009.
Strengthening its foothold in the luxury market, CDL,
through its wholly owned subsidiary, Aston Properties Pte Ltd,
purchased Lucky Tower for $383 million. A prime 169,189
square feet freehold site along Grange Road, it has the potential
to be redeveloped into an upscale 24-storey condominium.
Just a stone’s throw away, Futura was also purchased for $287.3 million. This 87,034 square feet freehold site can be developed
up to 36 storeys with more than 100 large-sized apartments.
Another well-located site comprising Lock Cho Apartment,
Comfort Mansion and a four-storey walk-up apartment
development in the Thomson Road vicinity was also purchased
for $156.3 million in March 2006. CDL hopes to amalgamate
the site with an adjoining state land, enlarging the site to an
impressive 179,828 square feet. With a permissible height of
36 storeys, this freehold development is estimated to contain
about 380 to 400 apartments.
In line with CDL’s policy to replenish its land bank, its four
strategic land acquisitions amount to over $1 billion with a
gross floor area of more than 1.8 million square feet.
To add to its land bank, in February 2007, CDL also made
a successful bid for The Albany, a prime residential freehold
site in district 11 for $65 million. The Albany site is approximately
41,688 square feet with the possible purchase of an
adjoining state land plot of 15,177 square feet. It is just next
to the sites purchased in March 2006. CDL also purchased the
freehold Concorde Residences which is 34,092 square feet in
size. With these two additional sites along Thomson Road, CDL
has certainly strengthened its presence in the vicinity.
|HIGH REIT SOLUTIONS
CDL Hospitality Trusts (CDLHT) was successfully listed on
the main board of the Singapore Exchange on 19 July 2006.
CDL Hospitality Trusts is a stapled group comprising CDL Hospitality
Real Estate Investment Trust (H-REIT) and CDL Hospitality
H-REIT is the first hotel real estate investment trust in Asia
(excluding Japan), established with the principal investment
strategy of investing in a portfolio of hospitality and hospitality
related real estate assets. It started with an initial focus on
Asia and Australasia, leveraging on the strengths of its sponsor,
Millennium & Copthorne Hotels plc (M&C).
Currently, H-REIT’s portfolio comprises Orchard Hotel
and Orchard Hotel Shopping Arcade, Grand Copthorne WaWaterfront
Hotel, M Hotel and Copthorne King’s Hotel, all based
in Singapore, as well as Rendezvous Hotel Auckland in
Its sterling performance this year has led to a 100% increase
from its IPO price of $0.83 to $1.67 at the end of the year.
|CREATING HIGH VALUES OF HOSPITALITY EXCELLENCE
M&C has delivered the highest level of profits since its
listing in 1996. It has performed well with an 8.6% increase
in revenue to £646.3 million with headline operating profit
up 15.4% to £124.7 million.
The sale of long leasehold interests in three Singapore
hotels has demonstrated M&C’s astute ability to not only unlock
shareholder value but to create and use an appropriate
platform to accelerate future portfolio growth.
M&C signed on nine management contracts in 2006 taking
the total number of rooms signed since 2004 to just under
4,000 and the total number of management contracts to 21.
M&C’s first foothold in China, the Millennium Hongqiao
Hotel Shanghai, opened its doors in October. Located along
Yan An Xi Road, the premium five-star hotel has 369 rooms
catering to all the needs of the world class traveller. M&C also
announced in May that its second hotel in China, the
520-room Millennium Beijing, is slated to open as early as
In Singapore, M&C strengthened its presence in having
successfully bid for a hotel site along the trendy Mohamed
Sultan Road and Nanson Road for $45.8 million through
Republic Hotels & Resorts Limited, a wholly owned M&C subsidiary.
The site has the potential to be developed into a
10-storey hotel with about 350 to 400 rooms.
With its strong balance sheet, the flexibility created
through the hospitality REIT platform and with a new management
team under the leadership of its new Group Chief
Executive Officer, Mr Peter Papas, M&C is in an advantageous
and enviable position to seize opportunities and is well-placed
for its next phase of growth.