City Developments Ltd. (CDL), led by billionaire Kwek Leng Beng, has announced plans to sell the aging Delfi Orchard retail mall in Singapore’s Orchard Road shopping district. The property is being sold at a reserve price of S$438 million, with CDL owning 126 of the 150 units in the building. This marks the second divestment for CDL this year, following the sale of luxury apartment units at The Residences at W Sentosa.
In an effort to reduce its gearing, City Developments aims to raise S$1 billion through asset divestment. The company’s net profit declined by 75% in 2023 due to high interest rates and a global property downturn. The Delfi Orchard property, sitting on a freehold site of 20,264 square feet, can be redeveloped into a commercial building of up to 20 stories with a built-up space of 131,186 square feet, according to Savills Singapore.
Orchard Road is undergoing a transformation with various developers planning to rejuvenate aging buildings in the area. Tycoon Ong Beng Seng’s Hotel Properties intends to redevelop the voco Orchard hotel and two nearby properties into a mixed-use complex. Similarly, Royal Group, led by Singapore billionaire Asok Kumar Hiranandani, is converting the Ming Arcade into a boutique hotel, while Indonesian tycoon Sukanto Tanoto plans to redevelop the Tanglin Shopping Center.
The Orchard Road area has seen significant interest from developers, with Far East Shopping Center also attracting attention. Chinese steel tycoon Du Shuanghua had initially agreed to purchase the mall for S$910 million but later withdrew from the deal due to regulatory issues. These developments reflect the ongoing efforts to revitalize Orchard Road, with developers investing billions of dollars in transforming the iconic shopping district. The collective sales and redevelopment projects in the area are expected to reshape the landscape and enhance the appeal of Orchard Road as a premier destination in Singapore.
