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12-09-2021, 12:02 AM
CDL sells Chinese unit for US$1 after US$1.4b write-off
Ishika Mookerjee
September 11, 2021 15:32 pm +08
(Sept 11): Singapore’s City Developments Ltd is selling its stake in Chongqing Sincere Yuanchuang Industry Co for US$1, as it ends the tumultuous backing of the cash-strapped Chinese developer.
The real estate group will sell a 63.75% equity interest in HCP Chongqing Property Development Co — which owns an 80.01% stake in Sincere, according to a statement published late Friday. The buyer is Sure Spread Ltd, an unrelated third party incorporated in the Republic of Seychelles.
City Developments, led by Chief Executive Officer Sherman Kwek, had already written down almost all of its S$1.9 billion (US$1.4 billion) investment in Chongqing Sincere. It acquired a majority stake in Sincere last April but the pandemic and China’s “three red lines” policy increased liquidity constraints at the unit, forcing losses on the broader Singaporean company.
Ishika Mookerjee
September 11, 2021 15:32 pm +08
(Sept 11): Singapore’s City Developments Ltd is selling its stake in Chongqing Sincere Yuanchuang Industry Co for US$1, as it ends the tumultuous backing of the cash-strapped Chinese developer.
The real estate group will sell a 63.75% equity interest in HCP Chongqing Property Development Co — which owns an 80.01% stake in Sincere, according to a statement published late Friday. The buyer is Sure Spread Ltd, an unrelated third party incorporated in the Republic of Seychelles.
City Developments, led by Chief Executive Officer Sherman Kwek, had already written down almost all of its S$1.9 billion (US$1.4 billion) investment in Chongqing Sincere. It acquired a majority stake in Sincere last April but the pandemic and China’s “three red lines” policy increased liquidity constraints at the unit, forcing losses on the broader Singaporean company.
