Singapore, 4 June 2025 – City Developments Limited (CDL) and IOI Properties Group Berhad (IOIPG) have entered into a share sale agreement for their joint venture (JV) South Beach mixed-use integrated development. Under this agreement, IOIPG will acquire CDL’s 50.1% interest in the development, based on an agreed property value of S$2.75 billion on a 100% interest basis, which represents an approximately 3.0% premium over the latest valuation of S$2.67 billion as of 31 December 2024¹.
The transaction will be executed via a share sale in the holding company Scottsdale Properties Pte. Ltd.. Based on CDL’s proportionate 50.1% share of its consolidated net assets as of 30 April 2025, the estimated sale consideration is S$834.2 million.
CDL and IOIPG have been long-term JV partners in South Beach since 2011, having co-developed the 3.5-hectare site into one of Singapore’s most recognisable architectural landmarks. Directly connected to Esplanade MRT station and City Hall MRT Interchange, the development features Grade A office space (South Beach Tower), a 634-room JW Marriott Hotel Singapore South Beach, restaurants and cafes (South Beach Avenue and Quarter, as well as the NCO Club) and South Beach Residences comprising 190 luxury apartments and penthouses.
Upon completion of the transaction expected by Q3 2025, IOIPG will gain full ownership of South Beach’s commercial components. The strata-titled residential component, South Beach Residences, has been fully sold since September 2021.
The South Beach site was awarded through a Government Land Sales tender, which incorporated a two-envelope Concept and Price tender in 2007 and obtained Temporary Occupation Permit (TOP) in 2015/2016. It sits on a 99-year leasehold site that commenced on 10 December 2007, with about 81 years remaining on the lease.
In line with their respective capital and portfolio priorities, this strategic transaction will allow CDL via its divestment to realise value, whilst enabling IOIPG to enlarge its stable of recurring income assets – on a sizeable integrated mixed-use development in the CCR/ CBD fringe district which is still undergoing transformation.
Mr Kwek Leng Beng, CDL’s Executive Chairman, said, “South Beach began as a bold vision to enhance Singapore’s reputation as a global city, attract international investors and create a new icon that blends modern, sustainable architecture while preserving the site’s conserved buildings. I had the privilege of bringing together esteemed partners, including the late Tan Sri Dato' Dr Lee Shin Cheng, IOIPG’s late Founder and Executive Chairman, who shared my conviction to make South Beach one of Singapore’s most iconic developments. With IOIPG’s partnership, we were pioneers in creating this distinctive landmark and introduced the first JW Marriott branded hotel to Singapore. Today, South Beach is a testament to our long-standing collaboration, foresight and resilience. As this property reaches maturity, we have fulfilled our promise. This strategic divestment enables CDL to realise exceptional value, while entrusting the ownership to a partner that knows South Beach well, marking a natural evolution in our successful partnership.”
Mr Sherman Kwek, CDL’s Group Chief Executive Officer, said, “The iconic South Beach landmark represents the shared commitment and fruitful partnership we have forged with IOIPG for over a decade. Having fulfilled our vision for South Beach – from securing the land site via a rigorous tender process in 2007, navigating macroeconomic challenges, to transforming it into the high-performing, stabilised asset it is today – it is now time to crystallise its value. This transaction gives a strong boost to CDL’s efforts to accelerate capital recycling so as to reduce gearing and redeploy capital. We will continue to unlock value across our diversified portfolio and pursue future growth opportunities.”
Mr Lee Yeow Seng, IOIPG’s Group Chief Executive Officer, said, “The South Beach development holds immense significance for IOIPG. To describe it as an iconic development which we are honoured to have been a part of, is an understatement. This development presented us with the opportunity to change the skyline of Singapore, while building a good relationship with CDL, a leader in the real estate industry. The exemplary leadership of Mr Kwek Leng Beng, his grit and steadfast vision were instrumental in transforming this site, a place of great historical and sentimental value to many of the Singaporeans and visitors alike. The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOIPG in Singapore. Combined with the IOI Central Boulevard Towers (ICBT) and the W Singapore – Marina View hotel, this acquisition will elevate the Group’s profile as one of the major landlords of premium office space and a prominent player in the hospitality industry within the Republic.”
Inclusive of this acquisition, the total net lettable area (NLA) of IOIPG’s investment assets in Singapore would stand at 1.8 million sq ft. The total NLA of its Property Investment segment would stand at 9.82 million sq ft across five malls and six offices in Malaysia, Singapore and Xiamen, the People’s Republic of China. The total assets of IOIPG (including investment properties, hotel assets and property development assets) stands at RM47.93 billion as of 31 March 2025.
The acquisition is in line with the overall strategy of IOIPG in acquiring and investing in high-quality assets which will provide stable recurring income and sustained growth in the matured and stable markets where it operates in, particularly in Singapore.
Moving forward, as the challenging business environment persists with the ongoing geopolitical uncertainties, IOIPG will keep its options open for any opportunities by leveraging and optimising its position in creating additional value for its stakeholders and strengthening its diverse offerings as well as establishing superior revenue generators, as one of the leading property groups in the region.
As of 31 March 2025, South Beach’s office and retail components achieved a strong committed occupancy of 92.4% and 92.5%, respectively.
Following the divestment of South Beach, CDL continues to hold a sizeable commercial and retail portfolio in Singapore, totalling around 2.6 million sq ft of existing and pipeline lettable space. It also continues to operate six hotels, totalling 2,608 rooms, under its directly owned hotel operator, Millennium Hotels and Resorts, in addition to owning hotels such as The St. Regis Singapore and The Singapore EDITION.
1 The independent valuation was conducted by Edmund Tie & Company.