City Developments Limited (CDL) will redevelop its Central Mall properties and the surrounding area of Singapore into a large-scale mixed-use development following the proposed acquisition of Central Square for a purchase consideration of S$315 million ($230 million).
Located at 20 Havelock Road, Central Square is a 99-year leasehold commercial and residential development, with a remaining lease tenure of about 72 years, which comprises a serviced residence and commercial spaces including offices and retail units.
Through its wholly owned subsidiary, CDL Constellation Pte. Ltd., CDL has entered into a put-and-call option agreement to acquire the asset from DBS Trustee Limited (a trustee of Far East Hospitality Real Estate Investment Trust) for S$313.2 million ($229 million) and the reversionary leasehold interest from OPH Riverside Pte Ltd for S$1.8 million ($1.3 million). The transaction includes an incentive payment of as much as S$18 million ($13 million) above the
