City Developments (CDL) will start building the $2.5-billion South Beach project in Beach Road next year, said CDL Executive Chairman Kwek Leng Beng.
Mr. Kwek gave recent updates on the project, as he unveiled that the company’s net profit in Q4 made a 77 percent increase. The project was postponed in late 2008 due to high construction costs and was intended to commence this year.
He set aside financial worries over the mega project which will be completed in 2016. The project will feature luxury hotels, office and retail spaces and residential units.
CDL acquired the site in 2007 through a joint venture with El-Ad Group and Dubai World, which were hit by debt woes.
“We cannot presume that the two partners have no money. If the two partners have no money then their share will be diluted,” said Mr. Kwek.
Last June, Hong Kong’s Nan Fung group emerged as a new investor in the project under a refinancing exercise. “The verbal understanding with Nan Fung is that both of us will put in more money if so required,” added Mr. Kwek
CDL’s net profit in Q4 surged 77 percent to $176.7 million, as the company gained profit in projects like The Arte, One Shenton and Cliveden at Grange. The company’s output beats the $129 million estimated average result of six analysts surveyed by Dow Jones Newswires. CDL’s Q4 revenue rose 28.6 percent to $922.4 million.