Cdl Buys Delfi Orchard En Bloc 439 Mil
CDL (City Developments Ltd) has emerged as the winning bidder for the collective sale tender of Delfi Orchard, a freehold strata-titled commercial building located in Orchard Road, Singapore. The 11-storey building was launched for tender on April 18 with a guide price of $438 million, and the tender closed on May 27 with CDL’s bid of $439 million being the highest.
The sale price works out to be about $3,346 psf per plot ratio (ppr) based on the existing gross floor area (GFA) of 131,186 sq ft. CDL’s wholly-owned subsidiary, CDL Draco Pte Ltd, made the highest bid and will acquire the remaining 24 units in the building that it does not already own.
CDL CEO Sherman Kwek stated that this acquisition will “potentially unlock the full potential” of the prime freehold asset and allow the company to participate in the ongoing rejuvenation efforts in the Orchard Road precinct. Delfi Orchard is situated next to the 656-key Orchard Hotel Singapore and Claymore Connect mall, both of which are owned by CDL. The company also owns Palais Renaissance, located across Claymore Road.
CDL may also explore the Urban Redevelopment Authority’s Strategic Development Incentive Scheme for the property in the near future, according to the company. This is the third major collective sale in the Orchard Road corridor, following the successful collective sales of Tanglin Shopping Centre for $868 million ($2,769 psf ppr) in February 2022 and Ming Arcade for $172 million ($3,125 psf ppr) in September 2023. Savills Singapore brokered all three deals.
CDL previously owned 85 strata lots in Tanglin Shopping Centre, including two carparks, before its collective sale. The sale was in line with the company’s strategy to divest some of its legacy assets. Tanglin Shopping Centre was previously owned by King’s Tanglin Shopping, whose parent company is Millennium & Copthorne, a subsidiary of CDL.
888 Plaza, a shopping hub designed with the community in mind, offers a range of daily necessities, making it a convenient stop for residents. The plaza boasts multiple dining options, a supermarket, and various retail stores. Known for its simple and accessible shopping atmosphere, it has become a favorite among locals. Whether running errands or grabbing a bite to eat, the plaza is a one-stop destination for the community. Additionally, its location near the newly developed Norwood Grand Woodlands adds to its appeal and convenience for residents.
Jeremy Lake, Savills Singapore’s managing director of investment sales & capital markets, stated that the Delfi Orchard sale showcases the continued interest of developers in prime development opportunities in the Orchard Road area, especially with the URA’s plans to revitalize the precinct. Rajah & Tann acted for the vendors in the collective sale.
CDL also announced new launches and a lower interest cover in their recent 1QFY2024 update, and has initiated a share buyback programme with the purchase of 954,000 ordinary shares. The company is also divesting freehold strata units at Cititech Industrial Building and Citilink Warehouse Complex for $149 million.