Blackstone, CIMB to invest in CDL’s Sentosa Cove properties

United States investment giant Blackstone and Malaysia’s CIMB Bank will invest in three Sentosa Cove properties owned by City Developments (CDL), including the W Singapore hotel, in a complex transaction valued at S$1.5 billion.

The investment in the Quayside Collection – comprising the W hotel, the Quayside Isle retail complex and the Residences at W Singapore – will be via an investment instrument called a Profit Participating Security (PPS) that will give investors a fixed payout based on 5 per cent interest per annum for a period of five years, in addition to a participation in the cashflow over the period that they hold the PPS.

Astoria Holdings, a wholly-owned subsidiary of CDL, will invest S$281 million in the PPS, while Blackstone’s Tactical Opportunities Fund will invest S$367 million. CIMB Bank will contribute S$102 million. Concurrently, DBS Bank and Oversea-Chinese Banking Corporation will provide S$750 million in value of senior loan facilities.

CDL Executive Chairman Kwek Leng Beng said: “This offers investors a rare opportunity to participate in the cashflow from high-quality assets in Sentosa Cove. By leveraging on the operating strength and solid cashflows of the Quayside Collection, we will be able to build and deploy capital for our global plans.”

Source : Channel NewsAsia – 16 Dec 2014

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