CDL to sell 50.1% of South Beach complex to IOI group for $834m

Sale to Malaysian partner values property at $2.75b, a 3% premium over latest valuation

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City Developments (CDL) has agreed to sell its 50.1 per cent stake in the South Beach mixed project to partner Malaysia's IOI Properties Group (IOIPG) for about $834.2 million.

The deal values the complex at about $2.75 billion, which represents a premium of around 3 per cent over the latest valuation of $2.67 billion as at Dec 31, 2024.

The transaction is expected to result in a gain on disposal of about $465 million for the financial year ending Dec 31, 2025, CDL said on June 4.

IOIPG will take full ownership of South Beach's commercial components upon completion in the second half of 2025. The strata-titled residential component, South Beach Residences, has been fully sold since September 2021.

CDL shares rose 2.5 per cent, or 12 cents, to close at $4.99 on June 4. The company lifted a trading halt it had called at 9.20am.

News of the South Beach sale comes in the wake of a public feud between father and son in CDL's Kwek family, which emerged in late February.