Continue reading this on our app for a better experience

Open in App
Floating Button
Home News Company in the news

CDL appoints special working group to review and improve liquidity and profitability for Sincere Property Group

Felicia Tan
Felicia Tan • 2 min read
CDL appoints special working group to review and improve liquidity and profitability for Sincere Property Group
As at 4.02pm, shares in CDL are trading 18 cents lower or 2.3% down at $7.79.
Font Resizer
Share to Whatsapp
Share to Facebook
Share to LinkedIn
Scroll to top
Follow us on Facebook and join our Telegram channel for the latest updates.

City Developments Limited (CDL) has set up a special working group to review and improve liquidity and profitability of its 51.01% joint venture (JV) equity investment in Sincere Property Group.

Deloitte China has been engaged as external financial advisor to assist the group. The appointment comes following the appointment of Deloitte & Touche in November 2020 to evaluate CDL’s investment in Sincere Property Group.


See: CDL appoints Deloitte & Touche as external financial advisor to evaluate investment in Sincere Property Group

The group comprises a cross-section of internal expertise across divisions, led by Goh Ann Nee, chief transformation officer in the executive chairman's office.

The special working group will identify and evaluate options to improve Sincere Property’s liquidity.

Together, the group will review the potential divestments of assets and restructuring of existing liabilities of the China-based real estate group.

As at the date of the review performed by Deloitte & Touch, Sincere Property has over 314 legal entities and 71 projects in 18 cities totalling around 8.6 million sqm.

The projects, which comprise hotels and serviced apartments, commercial and office buildings, business parks as well as residential projects, was preliminarily allocated into three categories.

These are: projects that are profitable and generating positive cash; projects that can be divested (subject to the right market conditions) to improve liquidity; and projects which need further detailed operation review to identify feasible options to improve profitability and/or liquidity, according to the statement released by CDL on Jan 4.

“The CDL special working group will accelerate efforts by CDL to work closely with Sincere Property to improve its liquidity and profitability while limiting any additional financial exposure to the Group. Notwithstanding the liquidity challenges, Sincere Property remains a platform for future growth in the Chinese market because of its real estate footprint across China,” says Kwek Leng Beng, CDL’s executive chairman.

CDL has seen the resignation of three directors regarding the group’s investment in Sincere Property Group, including Kwek Leng Peck, the cousin of Kwek Leng Beng.

See also: Citing disagreements over investment in China, Kwek Leng Peck quits CDL's board, Another CDL director resigns in relation to Sincere Property investment and Third CDL director resigns in relation to Sincere Property investment

As at 4.02pm, shares in CDL are trading 18 cents lower or 2.3% down at $7.79.

Highlights

Re test Testing QA Spotlight
1000th issue

Re test Testing QA Spotlight

×
The Edge Singapore
Download The Edge Singapore App
Google playApple store play
Keep updated
Follow our social media
© 2024 The Edge Publishing Pte Ltd. All rights reserved.