CDL shares dip 8.1% after strategic review release
[SINGAPORE] Shareholders took a negative view of City Developments Ltd’s (CDL) strategic review reveal on Monday (Sep 28).
The counter fell 5.7 per cent by midday and later closed 8.1 per cent down at S$7.59, having retreated S$0.67 over the day with nearly 12 million shares worth S$92.9 million changing hands.
The property giant said on Monday that it intends to deploy S$5 billion in growth capital and target S$6 billion in divestments across its portfolio over the next three years.
It is part of a “refreshed” road map to improve strategic focus and long-term shareholder value.
Singapore will continue to be the principal market for CDL’s new investments.
Of the S$5 billion in planned growth capital, 60 per cent is earmarked for Singapore, while 30 per cent is for China and Japan. The remaining 10 per cent is for other markets.
The investments will be focused across four sectors – residential, commercial, hospitality and living.
The strategic review also noted how fund management will become a more significant part of the group’s capital model. It is targeting S$10 billion in total assets under management (AUM) by FY2029, up from S$5 billion as at Jun 30.
CDL will hence establish a dedicated fund management entity, with an investment committee and leadership team that will be directly responsible for AUM growth and financial accountability.
In April 2025, CDL shares declined to a low of S$4.35, in the wake of a boardroom fight between executive chairman Kwek Leng Beng and his son Sherman Kwek, who is group CEO.
This came after an attempted coup by the younger Kwek in February last year, where the executive chairman later took his son to court, in a bid to consolidate control of the board and the group.
