IOI Properties acquires CDL’s stake in South Beach for $834.2m

The deal values the South Beach project at $2.75b.

IOI Properties Group Berhad (IOIPG) will acquire City Developments Limited’s (CDL) 50.1% stake in the South Beach mixed-use development for $834.2m.

The deal values the South Beach project at $2.75b, a 3% premium over its $2.67b valuation as of 31 December 2024.

The sale will be executed through a share transfer in their joint venture holding company, Scottsdale Properties Pte. Ltd. Completion is expected by Q3 2025.

CDL and IOIPG have jointly developed South Beach since 2011.

The 3.5-hectare site includes South Beach Tower (Grade A offices), JW Marriott Hotel Singapore South Beach, retail and F&B spaces, and the fully sold South Beach Residences.

The development, which received TOP in 2015/2016, sits on a 99-year leasehold site with 81 years remaining.

After the deal, IOIPG will own 100% of the commercial components. This increases its total net lettable area (NLA) in Singapore to 1.8 million sq ft. Across Malaysia, Singapore, and Xiamen, its investment property NLA totals 9.82 million sq ft. IOIPG’s total assets stood at RM47.93b as of 31 March 2025.

CDL said the sale is part of its strategy to unlock value. IOIPG said the acquisition strengthens its recurring income base and fits its plan to invest in stable, mature markets like Singapore.

South Beach’s office and retail spaces are currently 92.4% and 92.5% occupied.

CDL will continue to own 2.6 million sq ft of commercial and retail space in Singapore and operate six hotels under Millennium Hotels and Resorts, in addition to owning The St. Regis Singapore and The Singapore EDITION.