- IOI Properties Group will have full ownership of South Beach development in a S$2.75 billion deal.
- CDL sells its 50.1% interest, supporting its capital recycling strategy and reducing gearing.
- South Beach continues its role as an iconic mixed-use site in Marina Central, known for luxury residences, office space, and sustainability.
Two property giants have struck a S$2.75 billion deal for one of Singapore’s best-known mixed-use sites—what could this mean for office, hotel, and retail spaces downtown?
Deal Announcement and Key Terms
In a press release by CDL, City Developments Limited (CDL) and IOI Properties Group Berhad (IOIPG) have announced a major deal for the South Beach development.
The deal is valued at S$2.75 billion for the full development.
IOI Properties Group will buy CDL’s 50.1% interest in the holding company, Scottsdale Properties Pte. Ltd.
This gives IOIPG 100% ownership of South Beach.
The agreed property value is about 3% above the latest valuation as of 31 December 2024.
CDL’s sale consideration is estimated at S$834.2 million, based on its 50.1% share.
The deal is expected to complete by Q3 2025.
- Deal value: S$2.75 billion
- CDL’s interest sold: 50.1%
- Estimated cash for CDL: S$834.2 million
- Transaction type: Share sale in Scottsdale Properties Pte. Ltd.
- Premium over 2024 valuation: 3.0%
- Expected completion: Q3 2025
About the South Beach Development
South Beach is a well-known mixed-use site at the heart of the Marina Central district in Singapore’s downtown area.
The site blends four old military buildings and the former NCO Club with two new towers standing 34 and 45 storeys tall.
South Beach includes Grade A office space (South Beach Tower), retail run by South Beach Avenue and Quarter, the NCO Club, and residences.
The 634-room JW Marriott Hotel Singapore South Beach is a centrepiece of the site.
There are 190 luxury apartments in South Beach Residences, which were all sold by September 2021.
- 34- and 45-storey new towers
- 634-room JW Marriott Hotel Singapore South Beach
- 190 luxury residences
- Grade A office tower
- Historical buildings preserved and integrated
- Direct links to Esplanade and City Hall MRT
Strategic Rationale for the Transaction
According to CDL, CDL and IOIPG have worked as joint venture partners since 2011 to make South Beach a reality.
The deal fits CDL’s aim to realise value and speed up capital recycling.
This helps CDL to lower gearing and free up money for new investments.
For IOIPG, the acquisition boosts its pool of recurring income assets in the CCR/CBD fringe district and deepens its footprint in Singapore.
As quoted in CDL statement, Mr Sherman Kwek, CDL’s Group Chief Executive Officer, mentioned, “This transaction gives a strong boost to CDL’s efforts to accelerate capital recycling so as to reduce gearing and redeploy capital.”
South Beach is viewed as a mature, high-performing asset that now moves fully to IOIPG.
According to CDL, full ownership goes to a partner with a long history at the site.
Statements from Company Leaders
Leaders from both sides agree that South Beach stands for vision and partnership.
As quoted in CDL statement, Mr Kwek Leng Beng, CDL’s Executive Chairman, said, “South Beach began as a bold vision to enhance Singapore’s reputation as a global city, attract international investors and create a new icon that blends modern, sustainable architecture while preserving the site’s conserved buildings.”
Mr Lee Yeow Seng, IOIPG’s Group Chief Executive Officer, noted the importance of this acquisition for IOIPG’s future in Singapore.
As CDL stated, “The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOIPG in Singapore.”
Impact on IOI Properties Group’s Portfolio
Once this deal closes, IOIPG’s total net lettable area (NLA) in Singapore will reach 1.8 million sq ft.
Globally, IOIPG’s property investment segment has a total NLA of 9.82 million sq ft, with assets in Malaysia, Singapore, and Xiamen, China.
The group’s total assets stood at RM47.93 billion as at 31 March 2025.
South Beach adds more recurring income and stronger growth for IOIPG.
The strategy continues to focus on advanced and stable markets.
- Singapore NLA: 1.8 million sq ft
- Global NLA: 9.82 million sq ft
- Assets in Malaysia, Singapore, Xiamen
- Total assets: RM47.93 billion (as at 31 March 2025)
South Beach Design and History
The government awarded the South Beach site after a tender in 2007 using a two-envelope system.
Foster + Partners designed the development, known for its wave-like canopy and sustainable features.
Green Mark Platinum status was awarded, Singapore’s top green building certification.
The Temporary Occupation Permit was obtained in 2015/2016 for this 99-year leasehold plot.
As at 31 March 2025, office space was 92.4% occupied, and retail space was 92.5% occupied.
| Key Feature | Details |
|---|---|
| Developer | CDL & IOIPG (2011–2025), now fully IOIPG |
| Design | Foster + Partners |
| Green Rating | Green Mark Platinum |
| Office Occupancy | 92.4% |
| Retail Occupancy | 92.5% |
| TOP Year | 2015/2016 |
| Lease Remaining | 81 years |
CDL’s Portfolio After Divestment
CDL still keeps a large commercial and retail portfolio of 2.6 million sq ft in Singapore after selling South Beach.
Six hotels with 2,608 rooms are still operated by CDL under Millennium Hotels and Resorts, along with The St. Regis Singapore and The Singapore EDITION.
- Commercial and retail space: 2.6 million sq ft
- Hotels operated: 6 (2,608 rooms)
- Key hotels: St. Regis Singapore, Singapore EDITION
Do you think this large property acquisition will change the way Singapore’s mixed-use developments are managed and experienced?
