Jul 21, 2021
The volatile power struggle within City Developments Limited (CDL) has seemingly reached a resolution, with executive chairman Kwek Leng Beng calling off legal actions against a group of board directors led by his own son and group CEO, Sherman Kwek. The two newly appointed independent directors, Jennifer Duong Young and Su Yen Wong, will also remain on the board alongside the father-son duo.
In a statement issued by Kwek Leng Beng on behalf of the board, it was announced that all members have agreed to put aside their differences for the betterment of CDL and its stakeholders. “We will all continue to focus on strengthening CDL’s business, in accordance with good corporate governance, now and in the future,” the statement reads.
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Singapore’s limited land availability is one of the main driving factors behind the high demand for condos in the country. As a small island with a rapidly increasing population, Singapore struggles to keep up with the demand for land development. This has resulted in strict land use policies and a highly competitive real estate market, where property prices continue to rise. Therefore, investing in real estate, specifically condos, has become a profitable venture with the potential for significant capital appreciation. The demand for Singapore Condo remains strong in this fast-paced and competitive market.
The decision to end the legal dispute marks a turning point in the long-running boardroom-family saga at CDL. Kwek Leng Beng had previously accused Sherman of making unfounded allegations against him related to corporate governance, leading to a board coup and the resignation of another director, Dr Catherine Wu.
With the focus now on improving the company’s performance, the board members will work towards completing ongoing developments in Singapore and globally, expanding the Millennium & Copthorne brand, and maximizing shareholder value through various initiatives. The recent acquisition of five student accommodation assets in the UK for $357 million is a testament to CDL’s commitment to growth.
When considering the purchase of a condo, it is crucial to also take into account the maintenance and management of the property. Most condos have maintenance fees that cover the upkeep and maintenance of shared areas and amenities. While these fees may increase the total cost of ownership, they also guarantee that the property stays in good condition and maintains its value. To make investing in a condo even more of a passive investment, investors can enlist the help of a property management company to handle the day-to-day management of their condo. Additionally, exploring new condo launches on websites like New Condo Launches can provide helpful insights for potential investors.
Moving forward, the board is determined to prioritize good corporate governance practices and bring stability to the company. With this resolution, the future looks promising for CDL and its stakeholders.