Sembawang Road EC

CDL Unveils $6 Billion Asset Strategy for Future Growth

In a significant move to enhance its growth trajectory, City Developments Limited (CDL) has announced an ambitious strategy aimed at unlocking approximately $6 billion in mature and non-core assets. This strategic plan is set against the backdrop of a broader initiative to optimize capital allocation and enhance shareholder value over the next three financial years.

The unveiling of this strategy comes alongside the company’s goal to maintain a minimum annual dividend payout of 35% of its profit after tax and minority interests. Such measures highlight CDL’s commitment to boosting shareholder returns as it navigates a competitive real estate landscape.

Strategic Overview

Under its newly introduced GET+ strategy, covering the period from 2027 to 2029, CDL plans to unlock assets through various methods including divestment, securitization, or optimization across four key sectors: residential, commercial, hospitality, and living. The comprehensive asset divestment strategy is expected to comprise approximately 45% from commercial assets, 30% from hospitality holdings, with the remaining contributions from legacy residential properties and living sector assets.

Projected Financial Flow

In addition to the anticipated proceeds from divestments, CDL forecasts more than $6 billion in cash inflows derived from property development sales extending through fiscal year 2029. This optimistic forecast is supported by ongoing contracts and existing development pipelines that promise steady cash collections.

The company also aims to allocate around $5 billion for growth investments across these four sectors where it possesses established capabilities. Notably, Singapore remains the focal point for new investments with about 60% of funds directed towards opportunities within this market. China and Japan will attract about 30%, while other markets will receive the remaining 10%.

Hospitality Focus

A key component of CDL’s strategy is its focus on optimizing its hotel portfolio. The group intends to retain high-performing hotel assets while upgrading promising properties and strategically selling others to release capital or maximize their overall value. Specifically, CDL plans on divesting roughly $1.8 billion worth of hotels by FY2029—representing around 30% of its total divestment target.

The company currently boasts a global portfolio that includes around 165 hotels with approximately 48,000 rooms. Out of this total, roughly half are owned directly by CDL and valued at an estimated $8.6 billion.

Future Aspirations

CDL’s GET+ strategy also sets measurable goals such as achieving a net gearing ratio of 55% by FY2029 and realizing over $1 billion in profit post-tax gains from divestiture activities. Additionally, there are aspirations for managing up to $10 billion in assets under management (AUM), significantly increasing from the current AUM level recorded at mid-2026.

Learn more about our real estate strategies