CDL FY2025: Holiday Inn Kensington Acquired, South Beach Reclassified, Tech Park Shenzhen Expanded

City Developments Limited (CDL) FY2025 Annual Report (year ended 31 Dec 2025) shows an active year of portfolio repositioning — one high-profile hotel acquisition, structural reclassifications of two major Singapore assets, and continued expansion of its China technology park.

CDL's Singapore office portfolio achieved a committed occupancy of 97.8% as of 31 Dec 2025 (FY2024: 97.7%), outperforming the island-wide rate of 88.9%. Republic Plaza reached 98.3% (FY2024: 99.3%) post-AEI at Tower 2. City House hit 100% (FY2024: 98.6%). The retail portfolio came in at 97.6% (FY2024: 98.0%), comfortably above the island-wide 93.7%. City Square Mall led at 98.7% (FY2024: 95.7% on unaffected areas), buoyed by AEI completion in 1H 2025 which added ~26,000 sq ft GFA. Palais Renaissance held at 95.1% (FY2024: 99.5%), continuing to attract luxury retail and beauty concepts along Orchard Road.

CDL's UK commercial portfolio committed occupancy surged to 91.1% (FY2024: 79.5%) — the standout improvement in the FY2025 portfolio. All three assets improved: 125 Old Broad Street from 79.6% → 92.9% (reception refurbishment drove tenant expansions), Aldgate House from 75.8% → 98.6% (ground floor retail let, existing tenant expanded), and St Katharine Docks from 81.0% → 87.0% (new letting secured). CDL secured 250,000+ sq ft in renewals, lettings and under-offer transactions — about 24% of the UK NLA.

Hong Leong Technology Park Shenzhen's occupancy fell sharply from 58.6% to 27.6%, driven entirely by the Phase 4 expansion adding 67,183 sqm of new NLA — not by vacancy at existing buildings. China's office rental market remains challenging. Hong Leong Plaza Hongqiao has been reclassified as an asset held for sale.

Holiday Inn London Kensington (Acquired): CDL's most significant move in FY2025 was the acquisition of the 706-room Holiday Inn London Kensington High Street (Wrights Lane, W8) for approximately £280M (S$480.2M) — the largest single hotel acquisition in its FY2025 report. The freehold asset is 100% CDL-owned and is now listed as a Millennium & Copthorne asset in its 2025 AR. The deal meaningfully deepens CDL's London hospitality footprint.

South Beach Reclassified: The South Beach mixed-use development — which included the 634-room JW Marriott Hotel Singapore South Beach and 508,869 sq ft of office space (CDL's 50.1% interest) — no longer appears in CDL's 2025 Major Properties list. This follows the asset's operational maturity. The South Beach Tower office and JW Marriott hotel now appear under CDL Hospitality Trusts coverage in the market.

Delfi Orchard Fully Acquired: CDL completed its acquisition of the remaining 24 strata units in Delfi Orchard (Orchard Road) in January 2025, as flagged in the 2024 AR footnote. NLA increased from 73,895 sq ft to 91,279 sq ft — effectively a full-floor add. CDL now holds 100% effective interest.

City Industrial Building Removed: The 127,594 sq ft flatted factory at Tannery Lane quietly drops off the 2025 AR. No public announcement of disposal was made — CDL may have divested or reclassified this non-core industrial asset.

Quayside Isle (Divestment Feb 2026): Still listed as of 31 Dec 2025 but a footnote confirms divestment completed in February 2026, following completion of the sale of the Sentosa Cove F&B and retail development.

Yaojiang International (Divestment Feb 2026): The Shanghai North Bund office building is also footnoted as divested February 2026, continuing CDL's China portfolio rationalisation.

Hong Leong Technology Park in Shenzhen's Longgang District is CDL's largest ongoing development. Site area grew from 196,753 to 220,864 sq ft (+24,111 sq ft) and total NLA expanded from 808,019 to 931,274 sq ft (+123,255 sq ft) — reflecting Phase 4 construction. Phase 4 of this leasehold-to-2045 mixed industrial/office park remains active, with CDL holding 100% interest.

New Zealand interest uplift: All New Zealand Millennium, Copthorne and Kingsgate hotels saw effective group interest increase from 81% to 86%. Sofitel Brisbane Central also increased from 90% to 93%. These reflect additional share acquisitions in M&C's Australasian subsidiary.

Heritage Hotel Manila AEI: Room count increased from 325 to 450 — an AEI that expanded the Manila hotel's inventory and upgraded F&B facilities.

Holiday Inn Moscow Exit: The 201-room Holiday Inn Moscow Seligerskaya (50% CDL interest) was removed from the 2025 AR — continuing CDL's exit from Russia-linked assets.

Bespoke Hotel Shinsaibashi: The 256-room Osaka hotel operated by Bespoke Hotels is no longer listed under M&C Asia in the 2025 AR.

The Mayfair Hotel Christchurch: 67-room hotel in New Zealand added to the Australasia list for the first time in FY2025.

Two new EC GLS sites added to the development pipeline in FY2025: Senja Close EC (Bukit Panjang, 10,159 sqm, 100% CDL, expected 2030) and Woodlands Drive 17 EC (25,207 sqm, 100% CDL, expected 2030). Active pipeline completions in 2025 included Tembusu Grand (TOP'd), Piccadilly Grand/Galleria (TOP'd) and Copen Grand EC (TOP'd). Norwood Grand at Champions Way was accelerated — expected completion moved from 2028 to 2026, now 74% complete.

Zyon Grand (formerly Zion Road Parcel A) at Kim Seng Road was renamed and its expected completion updated to 2030 (50% JV).

CDL's FY2025 narrative is one of quiet but deliberate portfolio reshaping — exiting sub-scale or non-core assets (Moscow, Tannery Lane, China offices) and concentrating on premium London hospitality (Holiday Inn Kensington) and China technology park expansion. Singapore's investment portfolio is lean and high-quality; the residential pipeline is well-stocked with EC and private launches through 2030. Net Asset Value per share stood at S$10.74 (2024: S$10.17), with Revalued NAV at S$17.99 (2024: S$17.57).