City Developments Limited Unveils S$5 Billion Investment, S$6 Billion Divestment Strategy Targeting Commercial and Hospitality Assets

SINGAPORE, Sept. 28, 2026 — City Developments Limited announced a three-year strategic plan that calls for S$5 billion in real estate acquisitions and S$6 billion in asset sales across its commercial, hospitality and residential portfolios through fiscal year 2029, with Singapore remaining the primary focus for new investment.

The plan, which the company is calling GET+, builds on CDL's original Growth, Enhancement and Transformation strategy introduced in 2018. It sets out measurable financial targets across four sectors — Residential, Commercial, Hospitality and Living — and establishes a framework for reducing leverage, growing fee income and recycling capital from mature assets.

A 3-4-5-6 Roadmap for Capital Deployment and Divestment

The GET+ strategy is organized around what CDL describes as a 3-4-5-6 execution roadmap: three years, four sectors, S$5 billion of investments and S$6 billion of divestments. The company also projects more than S$6 billion of additional cash inflows from existing property development projects and contracted sales through FY2029, separate from the divestment target.

CDL's net gearing stood at 75% as of June 30, 2026, up from 71% at the end of 2025, driven in part by capital deployed for two Singapore Government Land Sale sites acquired during the first half of the year. The company's new leverage target of approximately 55% net gearing by FY2029 represents a material reduction from current levels.

The four targeted financial outcomes, which CDL labels PLUS, are: a dividend payout ratio of at least 35% of reported profit after tax and minority interests annually; net gearing of approximately 55% by FY2029; more than S$1 billion of PATMI to be realized from divestment gains; and total assets under management of S$10 billion.

"GET+ marks our next chapter of value creation, with a three-year execution roadmap marked by a sharper focus around where we deploy capital, how we manage our portfolio and where we can unlock value," said Sherman Kwek, Group Chief Executive Officer of CDL. "Through the 3-4-5-6 roadmap and measurable outcomes, we have provided greater accountability for what we need to deliver and our unwavering focus will be on strong execution as we work to strengthen our balance sheet, improve capital productivity and build a higher quality earnings base to maximise shareholder value."

Executive Chairman Kwek Leng Beng said the strategic review builds on more than six decades of real estate and hospitality portfolio development. "The Strategic Review builds on these strengths, while sharpening our priorities and setting a clear direction for the Group," he said.

Commercial Assets Lead Divestment Programme

Commercial properties account for the largest share of CDL's targeted divestments, at 45% of the S$6 billion programme, or approximately S$2.7 billion. Hospitality assets represent 30%, or roughly S$1.8 billion. Legacy residential and other assets account for 20%, or approximately S$1.2 billion, with the Living sector making up the remaining 5%, or about S$300 million.

CDL said potential divestment pathways include outright sales and, where appropriate, seeding assets into managed investment vehicles. The company said it will retain strategic assets that support recurring income and long-term value, enhance assets with identifiable upside and recycle capital where value is considered best realized through a transaction.

Hospitality Strategy: Retain, Enhance and Selectively Divest

CDL's global hospitality portfolio comprises 165 hotels with approximately 48,000 rooms, including 88 owned hotels. Of those, 54 hotels — including two scheduled to open within the next 12 months — are directly held by CDL and valued at approximately S$8.6 billion, excluding hotels held under CDL Hospitality Trusts and Millennium and Copthorne Hotels New Zealand Limited.

The company plans to apply a property-by-property approach to its owned hotel portfolio, retaining core assets, investing in properties with further operational or redevelopment potential and divesting selected hotels where value is considered mature. The S$1.8 billion hospitality divestment target represents 30% of the overall S$6 billion programme.

The hospitality segment's operating performance has improved heading into the strategic review period. CDL's hotel operations recorded a pretax profit of S$42.0 million in the first half of 2026, compared with a pretax loss of S$84.4 million in the same period a year earlier. The company's global hotel portfolio also posted a 4.3% increase in revenue per available room to S$144.80 in the first quarter of 2026, from S$138.80 a year prior.

CDL reported S$2.7 billion of revenue and S$301.6 million of PATMI for the first half of 2026, with PATMI more than tripling year on year. Despite the stronger earnings, the company's leverage rose alongside new land acquisitions, underscoring the capital-intensive nature of its recent growth and the rationale for the divestment-heavy strategy.

Investment Focus: Singapore, China and Japan

Under GET+, CDL plans to deploy the S$5 billion of growth capital in markets where the company has established capabilities, local knowledge and opportunities to generate risk-adjusted returns. Singapore will account for 60% of new investments, or approximately S$3 billion. China and Japan together represent 30%, or approximately S$1.5 billion, with other markets accounting for the remaining 10%, or approximately S$500 million.

The Singapore-heavy allocation reflects CDL's recent land-banking activity in the city-state. In the first quarter of 2026, CDL acquired the Tanjong Rhu Road Government Land Sale site for S$709.3 million, with 25% of the acquisition price paid at the time. That purchase contributed to the increase in net gearing that GET+ is now designed to address through capital recycling.

Fund Management Platform Targeted to Double AUM

A central component of the GET+ strategy is the expansion of CDL's fund management platform. The company is targeting S$10 billion in total assets under management by FY2029, up from approximately S$5 billion as of June 30, 2026. To support that goal, CDL plans to establish a dedicated fund management entity with its own investment committee and leadership team directly accountable for AUM growth.

The platform will encompass new and existing listed REIT structures as well as an expanded private capital platform through funds, partnerships and joint ventures. CDL said the fund management business will leverage the group's capabilities across acquisition, property development, property sales and leasing, asset management and hospitality operations.

The shift toward fee-generating fund management income is intended to reduce CDL's reliance on balance-sheet capital for growth, create a more robust capital recycling model and improve earnings visibility. By seeding assets from its own portfolio or new acquisitions into third-party-capitalized vehicles, CDL aims to scale beyond what its balance sheet alone could support.

CDL said it will provide regular updates on GET+ implementation and progress against its financial and strategic targets through ongoing financial reporting and investor communications.

Sources

City Developments Limited — CDL Unveils GET+ Strategy (Sept. 28, 2026)