CDL sells US$143.5 million residential property in Silicon Valley

The transaction will enable the company to reduce gearing and redeploy the capital to maximise shareholder returns: CEO Sherman Kwek

City Developments Ltd (CDL) on Thursday (Nov 20) said that its wholly owned subsidiary Millennium & Copthorne Hotels has divested a multifamily residential asset in the United States for US$143.5 million to a US-based institutional investor.

The 250-unit residential property stands on a 385,000 square foot freehold site located at 1250 Lakeside Drive in Sunnyvale, California, in the larger Silicon Valley area. The sale price is based on its net lettable area of 201,750 sq ft.

Following the divestment, CDL’s global living sector portfolio comprises around 7,600 multifamily units and student accommodation beds across Singapore, Japan, the United Kingdom and Australia, with a total gross development value of around S$3.7 billion.

Sherman Kwek, chief executive officer of CDL, said: “As a non-core, standalone asset in the US with limited operational scale in the multifamily space, this transaction enables us to reduce gearing and redeploy the capital to maximise shareholder returns.”

Kwek noted that since the privatisation of Millennium & Copthorne Hotels in 2019, the group has shifted its portfolio optimisation approach towards unlocking value from non-core and mature assets. He added that these include divestments of hotels in South Korea, UK and the US. They also include the collective sale of Tanglin Shopping Centre in Singapore, as well as the deconsolidation of CDL Hospitality Trusts.

The property is situated minutes from the headquarters and offices of major tech companies such as Apple, Google, Amazon and Nvidia.

It was put on sale in May via an expression of interest and marketed by Colliers USA, drawing “strong interest” from local property companies and real estate investment trusts, CDL said.

It was formerly the site of Four Points by Sheraton Sunnyvale before CDL developed it into a mixed-use project that was completed in 2021.

The development offers apartments ranging from studios to one- and two-bedroom units with contemporary architecture and premium finishes, the group added.

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It features amenities such as a fitness centre, coworking spaces and lakeside trails linked to nearby parks and attractions.

It is adjacent to M Social Hotel Sunnyvale, an upcoming 263-room lifestyle hotel that is being developed and is expected to be completed in the second half of 2026.

CDL noted that M Social Hotel Sunnyvale will be operated by Millennium Hotels and Resorts: “It will feature state-of-the-art event and meeting spaces, vibrant communal areas, and a design ethos inspired by the creativity and energy of Silicon Valley.”

The counter ended Wednesday at S$7.22, 0.3 per cent or S$0.02 higher.

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