Funds Management

In 2016, CDL unlocked value in Nouvel 18, a 156-unit luxury freehold residential development on Anderson Road through our third PPS platform for $977.6 million. This initiative was our first funds management platform where the asset was a purely high-end residential project. PPS 3 was also unique as it targeted Singaporean high net worth investors, while our previous two PPS platforms were primarily targeted at institutional investors.

Under the PPS 3 structure, we exited our entire interest in Summervale, the vehicle holding Nouvel 18, via a recapitalisation by high net worth Singaporeans and companies wholly-owned by Singapore citizens. The recapitalisation comprised $102 million issued in the form of ordinary and preference shares to Green 18 Pte Ltd, a special purpose vehicle company formed by the incoming investors.

The investors will enjoy a preferred 5% annual internal rate of return and upside beyond that, when the units are sold, less any incentives fees. Concurrently, two banks provided $579.2 million in senior loans facilities, and the remainder $296.4 million was raised via issuance of notes (fixed income securities).

The Group’s wholly-owned subsidiary, Trentwell Management Pte. Ltd. (Trentwell), was appointed as the exclusive asset manager and marketing agent (for five years with an option to extend to seven) to manage, lease, market and sell the units of Nouvel 18. Trentwell will receive an incentive fee after a performance benchmark is met.

The third PPS is in line with our strategy to grow our funds management business, enabling the Group to recycle capital for our growth plans and unlock shareholder value. With PPS, the Group has over $3.5 billion FUM and is on track to achieve our $5 billion FUM target by end-2018.