CDL ditches entire stakes in Summervale properties

The sale of Nouvel 18 is now under discussion.

City Developments (CDL), through its wholly owned subsidiary Sunmaster Holdings, has entered into an agreement to exit its entire interest in Summervale Properties, which owns Nouvel 18, for S$977.6mil.

In a statement, CDL said that it has unlocked value in Nouvel 18 through its third Profit Participation Securities (PPS) platform. After completion of the transaction, it will no longer hold any interests in the ordinary shares and preference shares in Summervale.

CDL's wholly owned subsidiary, Trentwell Management, will be appointed as the exclusive asset manager and marketing agent of Nouvel 18 for five to seven years. It will receive an incentive fee after a performance benchmark is met.

"The benchmark ensures that Summervale will have funds to first repay the senior loans and notes, and then redeem and deliver the annual 5% internal rate of return on the PPS. After the benchmark is fulfilled, Summervale will pay a portion of any excess as the incentive fee for Trentwell, and the remainder will be distributed to Green 18," explained CDL.