Blackstone joins $1.1b financing for Singapore property developer
The Blackstone Group is backing an investment platform launched by City Developments (CDL) that will enable the Singapore real estate firm to raise S$1.5 billion ($1.1 billion) in return for exposure to cashflows generated by properties on the resort island of Sentosa.
Blackstone is putting S$367 million into the platform - known as a profit participating security - from its Tactical Opportunities Fund. CIMB Bank has committed S$102 million, with a CDL subsidiary investing S$281 million. The balance will come in the form of a S$750 million in senior debt provided by DBS and OCBC.
The investors will receive a guaranteed annual coupon of 5% over a period of five years, in addition to cashflows from the properties. CDL's Sentosa portfolio includes the five-star W Singapore hotel, waterfront retail development Quayside Isle, and The Residences at W Singapore. The properties have been in operation for over two years.
"At Quayside Collection in Sentosa, CDL has created a distinctive portfolio of assets. We are delighted to partner them in this transaction and further cement our long-term commitment to Singapore," Stephen Schwarzman, chairman, co-founder and CEO of Blackstone, said in a statement.
CDL is one of Singapore's largest property developers and biggest landlords. Its network spans 88 locations in 25 countries across Asia, Europe, the Middle East, North America and Australasia, including five listed companies.
Grant Kelley, formerly head of Apollo Global Management's Asia Pacific real estate business, joined CDL as CEO earlier this year.
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