Template:Use Singapore English
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 Republic Plaza, CDL's flagship building and headquarters. | |
| Company type | Public |
|---|---|
| SGX:C09 | |
| Industry |
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| Founded | 7 September 1963; 62 years ago (1963-09-07)[1] |
| Headquarters | |
Key people |
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| Revenue |  S$3.43 billion[3] (2019) |
| S$754 million[3] (2019) | |
 S$565 million[3] (2019) | |
| Parent | Hong Leong Financial Group |
| Website | www |
City Developments Limited, also commonly referred to by its abbreviation,CDL, or asCityDev,[4] is aSingaporeanmultinational real estate operating organisation.[5] Founded in 1963, CDL first developed projects in Johor Bahru, Malaysia and Singapore. Due to geo-political changes, CDL was making a loss before being controlled by Hong Leong Bank via shares acquisition in 1969. Since then, CDL has developed many types of properties from shopping malls to integrated developments.[5] CDL is currently headquartered inRepublic Plaza, Singapore.Kwek Leng Beng is its current chairman; andSherman Kwek, Kwek Leng Ben's son, is its current chief executive officer.
City Developments Limited was founded on 7 September 1963 as a property company, initially starting with eight employees in Amber Mansions onOrchard Road. The company subsequently listed on the Malayan Stock Exchange (present-daySingapore Exchange) in November of the same year.[1]
When the company first started, it built its first project inJohor Bahru,Malaysia; a 200-unit bungalow development called Fresh Breezes, which was completed in 1965.[6] With Fresh Breezes, CDL introduced the concept of a "show house" as a sales technique, which was "believed to be unique in Asia".[7] It allows prospective buyers to preview how a property looks like before buying the property.[7] It built its second project in Johor Bahru called Marine Vista, a project that has expansive views of theStraits of Johor. CDL built its first Singapore project called City Towers inBukit Timah, which was completed in 1966. This was said to be Singapore's first high-rise project.[1] It also built Singapore's first condominium concept project, Clementi Park, in the same year.[8]
CDL was unprofitable for its first seven years' of operations, with therace riots in 1969 and withdrawal of British troops from Singapore affecting the property markets in Malaysia and Singapore.[9] Thus, CDL was forced to sell its properties in Johor Bahru and consolidated itself into the Singapore market.[9]Hong Leong Group began to invest in CDL in 1969, buying a substantial stake which allowed them to place three directors on CDL's board.[10] In 1972,Kwek Leng Beng, then an executive in Hong Leong Group, led an acquisition of a controlling stake in CDL,[11] transforming CDL into the core publicly traded entity of Hong Leong Group.[12] Kwek Leng Beng later became the managing director of CDL in 1974, and the executive chairman in 1995 after the death of his father,Kwek Hong Png.[12]Kwek Leng Joo, the younger brother of Kwek Leng Beng, became the managing director.[13] Capitalising on the strong economic growth which transformed Singapore into an industrialised nation,[14] CDL grew rapidly with a market capitalisation ofS$6 million in 1995.[15] Its flagship building,Republic Plaza, was officially opened on 18 January 1998 by thenPrime Minister of SingaporeGoh Chok Tong.[16]
With Hong Leong Group's investments into CDL, CDL's industrial properties was offloaded into Hong Leong Holdings, a subsidiary of Hong Leong Group.[15] It then diversified into hospitality industry through the establishment of CDL Hotels International (CDLHI) in 1989.[11] CDLHI acquired hotel properties across Asia, Europe, and United States.[17] Leveraging on the Millennium and Copthorne brands, CDL listedMillennium & Copthorne Hotels (M&C) onLondon Stock Exchange (LSE) in 1996. More hotel properties and brands were acquired and consolidated under M&C.[17] M&C also would come to manage hotels owned by other firms across the world.[18][19] As part of a restructuring exercise in 1999, CDLHI renamed to City e-Solutions Limited in 2000 with a focus on CDL's efforts to develop hospitality related internet businesses and other e-commerce business initiatives in various industries.[18][20]
During thefinancial crisis of 2007–2008 of which Singapore was affected,[12][21] its financial performance was affected by its exposure to theSterling Pound, as theSingapore dollar had strengthened against it, via itsUnited Kingdom-centric M&C.[22] However, it managed to remain one of the largest real estate development firms in Singapore post recession.[23]
In 2014, CDL appointed Grant Kelley into the newly created chief executive officer (CEO) role,[24] capitalising on Kelley's prior international experience.[25] The managing director role was abolished as well, and Kwek Leng Beng became a deputy chairman.[26] Under Kelley's leadership, CDL diversified its operations away from the Singapore market, focusing on the Australian, Chinese, Japanese and British markets.[27] At the same time in 2015,Sherman Kwek, the elder son of Kwek Leng Beng was appointed as a deputy CEO as part of the Kwek family's succession plan in CDL management.[27] In 2018, Sherman Kwek became the chief operating officer.[25]
In June 2019, M&C's board agreed to recommend a takeover offer, valuing the business at £2.23 billion, from CDL for the shares it did not already own.[28] The transaction became unconditional in September 2019.[29] M&C was delisted from LSE on 11 October, and effectively making M&C a full subsidiary of CDL.[30]
In May 2019, CDL made further investments into China with a 24% share acquisition of Sincere Property Group with a RMB 2.75 billion loan and a further RMB 2.75 billiontranche.[31][32] In April 2020, CDL renegotiated with Sincere to increase its shareholding in Sincere to 51.01% of its shares for a further RMB 4.39 billion due to the impact of theCOVID-19 pandemic.[31][33] This brought the total investments by CDL up to SGD 1.8 billion.[34] However, new pending regulatory changes in China introduced in August 2020, to limit the amount of debt owed by real estate companies, lead to concerns on Sincere's liquidity position by CDL.[35] At end of 2019, Sincere's liability made up of 68% of its assets, close to the 70% ceiling in the pending regulations.[36]
On 22 October 2020, its announced that Kwek Leng Peck, a cousin of Kwek Leng Beng and a longstanding director resigned in disagreement with CDL's board on the investments into Sincere, and its management of M&C.[35] By 30 December 2020, disagreements over the Sincere investments led to the further resignations of another two independent directors.[37] A working group was established within CDL to directly oversee and improve on Sincere's liquidity and profitability.[38][34] On 26 February 2021, CDL wrote down 93% of its investments, SGD 1.78 billion, for its 2020 fiscal year.[39] In March 2021, Sincere missed a repayment on the principal of a bond, which it alleged that due to key matters requiring CDL's approval, causing Sincere to miss the repayment deadline.[40][41] CDL refuted the claim, stating that the key decisions are jointly agreed upon and it does not have majority control of the board.[40]
CDL formalised its sustainability efforts in 1995 with the adoption of its ethosConversing as we Construct.[42] In 2003, CDL established its corporateenvironment, health and safety policy.[43] It then acquiredISO 14001 certification (Environmental Management System) from the local governing authority,Building and Construction Authority (BCA) in the same year.[43][44] It subsequently acquired certifications inISO 50001 – Energy Management System in 2014, andISO 14064-1 – on quantification and reportinggreenhouse gas inventory[45] in 2016, ahead of its competitors in the property development industry.[43]
In 1998, CDL became the first developer to install energy saving lifts, which allowed up to 50% savings of energy usage,[46] in a residential property project, the Florida Executive Condominium.[47] It also installedtwin-chute pneumatic refuse collection system in selected condominiums, where refuse and recyclables, disposed separately at residents' doorsteps, being transported to a central collection area.[46][48]
In 2009, CDL developed the 11 Tampines Concourse, Asia's first CarbonNeutral development,[49][47] andCity Square Mall, Singapore's first "eco-mall" with a number of eco-friendly facilities.[50][47] In 2012, CDL sought to retrofitRepublic Plaza, and upgraded its BCA Green Mark category from Gold to Platinum in the process.[51] Its retrofits included an upgraded chiller plant, energy efficient lights, and motion sensors to reduce energy wastage.[52] In 2017, CDL issued agreen bond to repay a loan for the retrofitting efforts, the first such bond in Singapore.[53]
In 2008, CDL adoptedGlobal Reporting Initiative's reporting framework for its sustainability report, becoming the first in Singapore to do so, which eventually was given an A+ rating in 2012's edition.[54] In the same year, CDL also had started disclosing its carbon emissions with theCarbon Disclosure Project publicly, making it the first Singaporean company to do so.[43] CDL would eventually score itself A grades in 2019, making it one of the 170 companies listed on DCP's annual "A List".[55] In 2019, according toCorporate Knights, CDL had the second highest score in terms of sustainability in Asia Pacific. In 2020, the company was ranked third.[56] The reason for this was an increase in energy usage.[56]
In addition, CDL was recognised forgender equality efforts along withDBS Bank in the Bloomberg's inaugural Gender-Equality Index (GEI) published in 2018.[57]
In the financial year of 2019[update], CDL reported having 248 subsidiaries, 53 associated companies, 12 trusts and 6 limited partnerships.[3]
Established in 1971, CBM Pte Ltd provided in-house engineering, cleaning and security services for CDL's properties. In 2007, capitalising on the capabilities in relation to facilities management gained over the years, CBM began taking on contracts from external clients across different sectors, such asMinistry of Defence andMinistry of Home Affairs.[58] CBM also had established presence in Qatar, Thailand, and Taiwan.[59] In 2011, CBM extended itself into developing carpark equipment for commercial and government owned carparks in Singapore, then carpark management services in Taiwan in 2014.[59]
CDL had diversified its property investments after being controlled by Hong Leong Group, beginning with the establishment of CDL Hotels International (CDLHI) in 1989.[11] Through CDLHI, CDL purchased hotels first within the Asian region, then further acquisitions inUnited States andEurope.[17] With its acquired hotels being renamed to include the Millennium brand,[60] CDLHI established the Millennium Hotels And Resorts global brand in 1995. On 8 October 1995,Aer Lingus sold Copthorne Hotels to CDL for£219,000,000 (equivalent to about £531,763,797 in 2023).[61][62]Millennium & Copthorne Hotels (M&C) was subsequently listed onLondon Stock Exchange (LSE) in 1996 and more hotel properties and brands were acquired and consolidated under M&C.[17] Concurrently, CDLHI became City e-Solutions Limited to focus on hospitality related internet businesses.[18][20] M&C also would come to manage hotels owned by other firms across the world.[18] In 2019, CDL privatised and made M&C a wholly owned subsidiary.[30]
In 2018, CDL andCapitaLand teamed up as a consortium for theSengkang Central tender, which they eventually won with a top bid of S$777.8 million.[63] Details of the development were released the following year with completion by 2022, being a 3.7-hectare mixed-use development next toBuangkok MRT station with a three-storey mall, a hawker centre and childcare centre, a community club which will be Singapore's largest and a 680-unit condominium.[64] The condominium and mall have since been named the Sengkang Grand Residences and Sengkang Grand Mall.[65]
In 2019, CDL became involved in a consortium with CapitaLand andAscott Residence Trust to redevelop thestrata titles thatLiang Court shopping mall and its adjacent buildings, a hotel and a serviced apartment,[66] are built on into an integrated development of a shopping mall, hotel, serviced apartments, and private residential towers.[67][68] CDL and CapitaLand came to own Liang Court after a S$400 million purchase in the same year.[69]
CDL's portfolio spans across integrated developments, shopping malls, hotels, offices and homes.
Its integrated developments include King's Centre,[70] Sunshine Plaza,[71] Quayside Isle @Sentosa Cove,[72] andSouth Beach Tower.[73] Current projects in progress include the redevelopment of Liang Court, which will be completed in stages from 2024,[67] as well as an integrated complex in Buangkok by 2022.[74][64] Under its portfolio of shopping malls, it ownsKatong Shopping Centre,[a]Palais Renaissance,[b] Tanglin Shopping Centre,[79] Delfi Orchard,[c] andCity Square Mall.[50] It also used to manageLot One andChinatown Point before being sold to CapitaLand and Perennial (Singapore) Retail Management respectively.[83][84][85]
Majority of CDL's hotels are operated under the Millennium & Copthorne Hotels brand, which spans across many countries around the world.[86] Other hotels owned by CDL include The St. Regis Singapore,[87] W Singapore Sentosa Cove,[88] JW Marriott hotel in South Beach[89] and Millennium Hilton Bangkok in Thailand.[90] CDL's office portfolio includes City House (which was its former headquarters before moving to Republic Plaza),[91] The Arcade,[d]Fuji Xerox Towers,[e] Fortune Centre,[f] andRepublic Plaza.[16] CDL's homes portfolio includeThe Sail @ Marina Bay,[99] andOne Shenton Way.[100]
{{cite web}}: CS1 maint: url-status (link){{cite web}}: CS1 maint: url-status (link){{cite web}}: CS1 maint: url-status (link){{cite web}}: CS1 maint: url-status (link){{cite web}}: CS1 maint: url-status (link){{cite news}}: CS1 maint: url-status (link){{cite web}}: CS1 maint: url-status (link){{cite web}}:|last= has generic name (help){{cite web}}:|last= has generic name (help){{cite web}}:|last= has generic name (help){{cite web}}:|archive-date= /|archive-url= timestamp mismatch; 31 October 2020 suggested (help)Doctors forced to leave Specialists' Shopping centre are being wooed to move into City Developments' King's centre complex on the banks of the Singapore River
TEN months ahead of its November opening, City Developments' suburban mall next to the Choa Chu Kang MRT Station has been let fully, with Japanese retailer Seiyu signing up as the final tenant.
Property based City Developments Ltd (cdl) has acquired the remaining 35 per cent stake in the subsidiary which owns Chinatown Point shopping complex.
A consortium called Perennial Chinatown Point has acquired the Chinatown Point retail mall and four office units for $250 million from developer City Developments.
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