DCL declares 60 Sunshine Plaza units for sale

DCL declares 60 Sunshine Plaza units for sale

All of its 60 strata office units at Sunshine Plaza in the Middle Road area on the market has been maintained for sale by the City Development Limited (CDL).

It is made known that the property giant wishes to sell the units to individuals at above $1,900 per square foot.

The current price at which the units are leased is $1,900 psf, the total yield is likely to be a little over 3.5%

Going between 484 sq ft and 1,345 sq ft, the units are on the second to sixth levels, and on the eighth to twelfth levels. Earlier CDL had sold the entire seventh floor.

Sunshine Plaza is located on a site having about 83 years leasehold remaining and is surrounded by four roads – Middle Road, Bencoolen Street, Prinsep Street and Prinsep Link.

The development, which CDL sold off earlier, also comprises apartments and shops were completed in 2001.

Regarding the office units, CDL has appointed DTZ as the main marketing agent for sale by private treaty. It is suspected that CDL offered Sunshine Plaza office units for sale on the individual basis after getting an unsolicited interest for an all-at-once sale of all 60 units.

The market observers are of the opinion that the decision made by CDL makes sense because the profit per square foot will be higher from selling the units individually than an en bloc sale to another party which would later reap the profits by reselling them to individuals.

The CDL-Wing Tai joint venture traded all 66 office units at Burlington Square, and along Bencoolen Street, to a Guthrie-Sun Venture tie-up for $89.3 million or $1,318 psf in May last year.

Almost 50 of the units have since been resold by the duo at an average price above $1,800 psf.

The 66 office units are from 549 sq ft and 1,066 sq ft. Burlington Square is located on a property having about 82 years of leasehold left.

The annual financial report for the year ended 31st December, 2012 released by CDL revealed that its executive chairman, Kwek Leng Beng and his brother, Leng Joo, the group’s managing director, have taken a cut in their remuneration for 2012 financial year.

However, the group disclosed a 15.1% reduction in the whole year net profit to $678.3 million in the previous year. On the contrary, revenue rose by 2.2% to a record $3.35 billion in 2012.

For the fourth quarter of the previous year, CDL posted a 52.8% year-on-year rise in the net profit to $249.3 million on the back of a 22.8% increase in revenue to $886.4 million.

The 2012 annual report of CDL lists Mr Kwek Leng Beng’s remuneration in the “above $8.75 million and up to $9 million” band. Both ends are $750,000 lower than the “above 9.5 million and up to $9.75 million” range for his remuneration for 2011 financial year.

His brother Leng Joo has been paid “above $7.5 million and up to $7.75 million” for 2012 financial year.

Both ends of this range stand at $500,000 below the “above $8 million and up to $8.25 million” band for his 2011 package.

His 2012 financial year remuneration included 15% in basic salary, 83% in variable bonuses/allowances, and 1% each in board/committee fees and other benefits.

For the chairman’s 2012 financial year remuneration, the components accounted for 13%, 80%, 6%, and 1% respectively. CDL, however closed $0.05 lower at $11.21 in the stock market on Thursday.


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