SINGAPORE: City Developments Limited (CDL) has agreed to divest Quayside Isle, the only dedicated commercial complex in Sentosa Cove, to a Singapore-based institutional buyer for S$97.3 million or about S$2,205 per square foot (psf).
The divestment represents a significant premium of about 47% over the prime waterfront retail asset’s book value of S$66 million, with the transaction expected to be completed in the first quarter of 2026 (Q1 2026). The sale reflects an exit cap rate of around 2.6%, the group said in a press release on Tuesday (Dec 16).
The property was put up for sale in September through an expression of interest (EOI) exercise that closed on Oct 15. CDL said the site drew strong interest from both local and overseas investors before the sale was secured.
With this transaction, CDL’s divestments for the year have reached about S$2 billion. It is the group’s eighth asset sale contracted this year, following deals involving South Beach, City Industrial Building and Piccadilly Galleria in Singapore. CDL also sold two non-core hotels in the US, a multifamily residential property there, and a hotel in Osaka, Japan.
CDL group CEO Sherman Kwek said the group had developed Quayside Isle into a lifestyle precinct for the Sentosa Cove community, with stable occupancy and a curated mix of well-established, long-term tenants.
He added that after nurturing the asset for more than a decade, the timing was right to “crystallise the value created and allow it to flourish under new stewardship.” /TISG
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