CITY Developments Limited (CDL) has increased its shareholding interest in Summervale Properties from 50 per cent to 100 per cent, after its wholly-owned subsidiary, Sunmaster Holdings, completed the acquisition from Wing Tai Land (WTL) for S$410.96 million.
Both CDL and WTL had considered various ways to optimise their interests in Summervale, which is the owner and developer of Nouvel 18, a prime development project, and agreed that the consolidation of the equity interests in Summervale under one party would provide flexibility for future plans relating to Summervale and Nouvel 18, said CDL in a statement on Tuesday.
Nouvel 18 is a 156-unit freehold residential development project. The project site is approximately 112,098 square feet (10,414 square metres) and is located along Anderson Road. It said it is exploring ways to optimise and unlock the value of the project, including via sales of individual units, bulk sales or a capital markets transaction.
The acquisition is not expected to have any material impact on the net tangible assets or earnings of the CDL group for the financial year ending December. Funding for the acquisition was through internal resources of the CDL group.