City Developments Limited (CDL) has reached another milestone in its capital recycling and portfolio optimisation efforts with the successful divestment of Quayside Isle @ Sentosa Cove, one of its landmark waterfront lifestyle assets.

Quayside Isle was launched for sale in September 2025 via an Expression of Interest (EOI) exercise, which drew strong interest from both local and international investors. CDL entered into a sales and purchase agreement with a Singapore-based institutional buyer to divest the property for S$97.3 million, or approximately S$2,205 per square foot (psf). This translates to a significant premium of about 47% over its book value of S$66.0 million. The transaction is expected to be completed in Q1 2026.

Completed in 2012, the development occupies Sentosa Cove’s only commercial marina quayside site, which was awarded to CDL from Urban Redevelopment Authority’s (URA) Government Land Sales tender in 2006. Over the years, Quayside Isle has evolved into a vibrant waterfront destination, offering a curated mix of dining and lifestyle concepts set against the marina backdrop. With approximately 44,121 square feet (sq ft) of net lettable area, the asset has maintained stable occupancy and a strong tenant profile, serving residents, yacht owners and visitors to the enclave.

Reflecting on the divestment, Mr Sherman Kwek, CDL's Group CEO, said, “Our vision for the rare waterfront site was to create a distinctive lifestyle precinct for the Sentosa Cove community. Over the past decade, Quayside Isle has evolved into a vibrant upscale destination, achieving strong performance with stable occupancy and a curated mix of well-established, long-term tenants. Having nurtured the asset from concept to maturity, it is timely to crystallise the value created and allow it to flourish under new stewardship. The strong investor interest we received for Quayside Isle and the sale outcome reaffirm continued investor demand for high-quality, income-generating assets. This divestment, which sees us exiting at a 2.6% cap rate, aligns with our disciplined capital recycling focus, enabling us to unlock value while maintaining a prudent and balanced approach to capital management.” 

This transaction marks CDL’s eighth asset sale contracted in 2025, following South Beach, City Industrial Building and Piccadilly Galleria in Singapore, two non-core hotels (Millennium Hotel St. Louis and Comfort Inn Near Vail Beaver Creek) and a multifamily residential property (1250 Lakeside) in the US, and more recently, Bespoke Hotel Osaka Shinsaibashi in Japan.

Including Quayside Isle, the Group has secured around S$2 billion in total divestments in 2025, exceeding total acquisitions of approximately S$1.7 billion for the year.