Faris Mokhtar, Bloomberg News
(Bloomberg) Singaporeâs richest property dynastyâs earnings took a severe hit last year, in part due to its contentious investment in a Chinese developer that has driven a rift in the billionaire family.
City Developments Ltd. posted a net loss of S$1.9 billion ($1.4 billion) for the year ended Dec. 31, it said in a statement Friday. While the pandemic has battered its hotel revenue and rental income, the company also posted an impairment loss of S$1.78 billion from its investment in Chinaâs Sincere Property Group.
Since CDL acquired a majority stake in Chongqing-based Sincere last April, the Chinese property firm has proved to be an onerous investment, creating a rift in a family dynasty thatâs worth $16.5 billion, according to last yearâs Bloomberg Billionaires Index list of Asiaâs richest clans. Three CDL directors, including the cousin of the firmâs chairman, have resigned in disagreement over the Sincere deal,
SG-listed CDL buys majority stake in Shenzhen tech park to shore up Chinese JV
February 23, 2021
Singapore-listed property developer City Developments Ltd (CDL) has entered into agreements to acquire a majority stake in Shenzhen technology park from Sincere Property Group and two entities of China Ping An. Sincere Property is its joint venture investment in China.
CDL said in a statement that it has acquired a total of 84.6% equity interest in Shenzhen Tusincere Technology Park Development Co. Ltd, the holding company, for 850 million yuan ($131.52 million) and will assume the existing shareholders’ loans proportionately. Sincere Property will continue to hold the balance 15.4% equity interest in the holding company.
A rendering of the Shenzhen Tusincere Tech Park on Longgang district
Singapore-listed City Developments Ltd on Monday said it had agreed to acquire an effective 55 percent stake in a Shenzhen technology park in a bid to shore up the liquidity of CDL’s joint venture with Chinese developer Sincere Property Group.
Under the terms of the deal, CDL has acquired a combined 84.6 percent interest from three separate shareholders Sincere itself and two entities controlled by mainland insurer Ping An in a holding firm, Shenzhen Tusincere Technology Park Development, for RMB 850 million ($131.5 million).
The holding firm in turn controls a 65 percent interest in Shenzhen Tusincere Technology Park, with a local state-owned enterprise owning the remaining 35 percent of the project, which has been independently valued at RMB 8.8 billion.
Proposals will likely focus on aviation, tourism sectors SINGAPORE: Equity investors expecting a big boost for Singapore’s benchmark index from its upcoming annual budget could be disappointed: heavyweight blue chips are unlikely to benefit from government largess.
Aimed at reversing the nation’s worst economic contraction since it became independent in 1965, tomorrow’s budget is set to focus on the pandemic-hit travel sector or firms with mandates in line with green or digital initiatives, say analysts.
That’s bad news for the benchmark Straits Times Index, which has risen 2.9% so far this year.
The gauge has significantly underperformed the broader MSCI Asia Pacific Index even though Singapore has managed to contain the spread of the virus.
Banks, Property Stocks Could Be Losers in Singapore’s Budget
Bloomberg 2/15/2021 Ishika Mookerjee and Abhishek Vishnoi
(Bloomberg) Equity investors expecting a big boost for Singapore’s benchmark index from its upcoming annual budget could be disappointed: heavyweight blue chips are unlikely to benefit from government largesse.
Aimed at reversing the nation’s worst economic contraction since it became independent in 1965, Tuesday’s budget is set to focus on the pandemic-hit travel sector or firms with mandates in line with green or digital initiatives, say analysts.
That’s bad news for the benchmark Straits Times Index, which has risen 3.5% so far this year. The gauge is lagging the broader MSCI Asia Pacific Index by six percentage points even though Singapore has managed to contain the spread of the virus.