Urban Development (CDL) sells all shares in the local comprehensive development project South Beach to IOI Properties Group, with a selling price of RMB 834.2 million.
2.75 billion yuan valuation is 3% higher than the last valuation of 2.67 billion yuan on December 31 last year.
Urban Development earlier established a capital recycling plan of 1 billion yuan in 2024, with the goal of releasing value and cashing out. However, the total amount of assets sold by the group in 2024 is about 600 million yuan, which cannot achieve its target. Among these projects are the Ransome’s Wharf location in London, Cideco Industrial Complex in Singapore, and multiple stratified deed units within four industrial buildings and commercial buildings.
The two real estate developers issued a joint statement on Wednesday (June 4) saying that the two parties have signed an equity sales agreement, and Urban Development sold its 50.1% stake in Fenghua South Bank to IOI at a valuation of RMB 2.75 billion.
The company also sold the retail and office parts of Hong Leong City Center in Suzhou Industrial Park.
The statement said that through this transaction, urban development can expand the scale of recurring income assets.
Urban Development Executive Chairman Guo Lingming said: "This strategic sale action has enabled urban development to realize great value. At the same time, we hand over ownership to partners familiar with Fenghua South Bank, which is a natural evolutionary symbol of our successful cooperation."
City Development announced a suspension of transactions at 9:20 a.m. Wednesday.
The transaction of the sale of equity is expected to be completed in the third quarter, and IOI will fully own the commercial part of Fenghua South Bank. The stratified land deed residential property of this project, South Beach Residences, was sold out in September 2021.
Urban Development will earn 465 million yuan from this transaction.
A cooperative project jointly developed by two groups on Fenghua South Bank, Beach Road.
Based on the comprehensive net assets of Urban Development on April 30 this year, the selling price of Fenghua South Bank equity is 834.2 million yuan, which can bring 465 million yuan in revenue for the fiscal year end this year.