City Developments divests Seoul hotel for $1.26b

The proposed divestment will be completed by Q1 2022.

City Developments Limited (CDL), through CDL Hotels (Korea) Limited, has entered into a sale and purchase agreement with YD427 PFV Co., Ltd, an entity managed by IGIS Asset Management Co. Ltd. The agreement was for the proposed divestment of Millennium Hilton Seoul and the adjoining land plot in Korea for approximately $1.26b (KRW 1.1t). IGIS Asset Management is one of the largest real estate managers in Korea.

The 22-storey Millennium Hilton Seoul was operated by Hilton Hotels & Resorts under a management contract. The hotel building comprises 680 guest rooms and 29 suites, a business centre, fitness centre, pool, area used for the casino and retail shops, restaurants and bar facilities and other associated facilities and amenities.

Upon completion of the proposed divestment, the group will have an estimated gain in the income statement of $529.73m, net of taxes and related transaction costs.

The proposed divestment, expected to be completed by 28 February 2022, is in line with the acceleration of the CDL Group's capital recycling strategy to unlock latent value from its long-held assets.

KRW 0.00115 = $1.00