Capitland and CDL joint force to develop Canninghill Integrated Development

Liang Court

The selling of its Share in Singapore Novotel Clarke Quay was completed by CDL Hospitality Trusts (CDLHT), while Ascott Residence Trust (ART) sold its interest in the property that includes Singapore Somerset Liang Court. This form part of the deal announced last November for the renovation of the Liang Court site – by a Joint venture consisting real estate renowned CapitaLand Limited, City Developers Limited (CDL) and ART. Liang Court mall, Novotel mid-scale hotel and Somerset Liang Court Singapore residence are situated on the site.

Novotel was to be sold to the 50:50 CDL-CapitaLand joint projects and CDL through CDLHT. At the same period, ART will offer 15,170 square meters (sq m) of the serviced residence to CDL in gross floor area (GFA) and hold 13,034 sq m of GFA.

In a Wednesday night filing, CDLHT said it had concluded the Novotel divestment to the Legend Quay, Gemini One Trust and Legend Commercial Trust redevelopment institutions for around S$375.9 million.

The cumulative expense of the divestment was around S$5.5 million, CDLHT said, which included winding down associated expenses from the hotel’s closing.

The total income is around S$370.3 million. In order to finance its purchase of the Condo in Sentosa CoveW Singapore luxury hotel by paying down short-term borrowings, the CDLHT managers expect to use around S$342.2 million of this sum. In November, the managers declared that CDLHT was going to purchase W Singapore from a subsidiary of CDL.

Approximately S$26.8 million of the Novotel sale’s net profits will go towards repaying current debt and/or allowing payments to CDLHT equity investors, and S$1.4 million will be used to fund legal fees and other forward buying expenses.

Under a forward purchasing deal, CDLHT, an affiliate of CDL, will own the latest hotel on the redeveloped Liang Court property.

As for ART, on Wednesday, the sale of the property in the serviced residence at 177 River Valley Road was completed and the sale price of approximately S$163.3 million in cash was obtained from the buyer, Gemini One Trust. More the Source here