Property developer City Developments Limited (CDL) has announced its expansion plans into the China real estate market, setting aside $300 million as starting capital for its newly-formed unit, CDL China Limited.
Mr. Kwek Leng Beng, executive chairman of CDL, said that given the tightening of the property market by Chinese regulators, the time may be ripe for the group to pick up sites or investment properties at attractive prices.
Mr. Sherman Kwek, the elder son of Mr. Kwek Leng Beng and the newly-appointed chief executive of CDL China, said that the company is targeting 12 Tier 1 or Tier 2 Chinese cities, and it will focus on the mid- to mid-high end residential property market. It will also seek for commercial developments “for medium to long term capital value and steady streams of income”.
However, the newly appointed CEO of the China unit noted that though CDL will expand its footprint abroad, it will remain firmly in Singapore. He added that the company will be launching the first phase of two new projects, the Copthorne Orchard at Bukit Timah and NV Residences at Pasir Ris, in the third quarter.
CDL yesterday announced that its net profit for the second quarter increased 17.6 percent to $164.6 million on the back of strong home sales in the Singapore property market. Net profit for the second half of this year also rose 36.2 percent to $304 million, while revenue rose 19.6 percent to $941.7 million and 20 percent to $1.7 billion in Q2 and H1, respectively.