City Developments Ltd. (CDL), under the leadership of billionaire Kwek Leng Beng, is focusing on revamping its assets in Singapore and worldwide in light of challenging macroeconomic conditions. The real estate giant recently announced the acquisition of Delfi Orchard, a prime freehold commercial property in Singapore’s Orchard Road shopping district, in a deal worth S$439 million. CDL already owns the majority of units in the building, and this acquisition gives them the opportunity to potentially redevelop the property as part of the government’s strategic development initiative.
Sherman Kwek, group CEO of City Developments, expressed excitement about the acquisition, stating that it allows the company to unlock the full potential of the prime asset. The Orchard Road precinct is undergoing a transformation, with several aging buildings set for redevelopment. Businesses like Hotel Properties, Royal Group, and Pacific Eagle Real Estate are also involved in redevelopment projects in the area, contributing to the rejuvenation efforts in the vicinity.
In addition to its Singapore assets, City Developments has been actively redeveloping its older buildings in the city. The company recently obtained approval to amalgamate the sites of Central Mall and Central Square in the Raffles Place central business district and redevelop them into Union Square, a mixed-use integrated development. Plans are also underway to redevelop the site of the former Fuji Xerox Tower in Tanjong Pagar into a mixed-use residential and commercial property.
Beyond Singapore, City Developments is expanding its hotel portfolio to capitalize on the tourism boom. The company recently acquired the Hilton Paris Opera Hotel and is investing in a new M Social Hotel in California, as well as renovations of existing hotels in London, New York, and Phuket. Despite the challenges faced by the real estate sector, City Developments remains cautiously optimistic about the future, anticipating improvements as interest rates stabilize.
Kwek, who is also the executive chairman of Hong Leong Group, comes from a prominent business family with interests in finance, food, and property. With a net worth of $11 billion, shared with his family, Kwek was ranked No. 5 on Singapore’s 50 Richest list last year. The strategic acquisitions and redevelopments undertaken by City Developments reflect the company’s commitment to adapting to changing market conditions and leveraging opportunities for growth and expansion both in Singapore and globally.
