PROPERTY PORTFOLIO 91 CITY DEVELOPMENTS LIMITED ANNUAL REPORT 2022 90 Studio M Hotel | Singapore FUND MANAGEMENT Fund management is an integral part of the Group’s transformation strategy. Besides nurturing existing listed platforms like CDL Hospitality Trusts (CDLHT) and IREIT Global, the Group continues to lay the foundation for future AUM growth. In June 2022, the Group partnered HThree City Australia Pte. Ltd. (HThree) to acquire 330 Collins Street, a freehold Grade A commercial tower in Melbourne, for A$236 million (approximately $214.7 million). Located in the heart of Melbourne’s CBD, the 18-storey office tower has a net lettable area of over 18,000 sqm, which includes retail space on the ground floor. It has a committed occupancy of 90%. The joint acquisition marked the Group’s expansion into the Australian office sector. The asset will be managed by HThree, which owns another office asset on Collins Street. While the Group has paused its IPO aspirations for its UK commercial properties, it continues to explore strategic acquisitions that will complement its fund management objectives. GROUP DIVESTMENTS During the year under review, the Group completed several major property divestments, which enabled it to realise significant capital gains as the Group had held these assets at book value over a long period of time. They include the sale of the Millennium Hilton Seoul and its adjoining land site in February, as well as the collective sales of Tanglin Shopping Centre and Golden Mile Complex in November, where the Group owns Share Value and Strata areas. Additionally, the Group also recognised substantive gains from the deconsolidation of CDLHT from a subsidiary to an associate, following the distribution in specie exercise of stapled securities in CDLHT completed in May 2022. GETTING RE-ENERGISED The outlook for 2023 remains uncertain, given near-term economic headwinds and ongoing challenges, including geopolitical tensions, inflation and interest rate hikes. While Singapore will always be its home ground and core market where it maintains a sizeable presence, the Group will continue to pursue its diversification strategy to build its global portfolio in its key overseas markets of China, UK, Japan and Australia. The Group will selectively and prudently examine opportunities to strategically expand its footprint as well as build scale in the Living Sector. This will enable the Group to diversify its geographical and asset class risks while strengthening its sustainable income streams. Looking ahead, the Group will remain steadfast in the execution of its GET strategy to expand, unlock value and transform its business – and emerge re-energised for the future. INVESTMENT PROPERTIES COMMERCIAL & RESIDENTIAL Total Lettable/Strata Area 7.2 MILLION SQ FT 19.7% 6.0% 48.2% 26.1% FH/LONG LEASEHOLD BREAKDOWN BY SECTOR Total Lettable Area/Strata Area 5.4 MILLION SQ FT 99-YEAR LEASEHOLD & BELOW BREAKDOWN BY SECTOR Total Lettable Area/Strata Area 1.8 MILLION SQ FT 75.1% FH/LONG LEASEHOLD 24.9% 99-YEAR LEASEHOLD & BELOW 6.9% 25.2% 67.9% 23.9% 8.0% 41.8% 26.3% PROPERTY PORTFOLIO ANALYSIS CDL GROUP’S ATTRIBUTABLE SHARE AS AT 31 DECEMBER 2022 Office Retail Industrial Residential ANALYSIS BY TENURE ANALYSIS BY SECTOR OPERATIONS AND MARKET REVIEW
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