CityDev unveils $1.5b Sentosa Cove investment platform

How will investors benefit?

City Developments Limited has partnered with Blackstone’s Tactical Opportunities Fund and CIMB Bank to create an investment platform that will raise $1.5b by investing in the cashflows of CDL’s properties in Sentosa Cove, called the Quayside Collection.

The Quayside Collection, an upscale integrated development on the resort island of Sentosa, comprises three adjacent properties developed by CDL.

CDL said that the Profit Participating Security (PPS), as the investment instrument is called, will see the investors receive a fixed payout based on 5% interest per annum for a period of five years, in addition to a participation in the cashflows over the period that they hold the PPS.

The total aggregated value of PPS is $75m, comprising $281 million subscribed by Astoria Holdings Limited, a wholly-owned subsidiary of CDL; Blackstone’s Tactical Opportunities Fund will invest $367 million; and CIMB Bank will contribute S$102 million.

Concurrently, DBS Bank and OCBC will provide $750 million in value of senior loan facilities.