City Developments Limited (CDL) has released a statement explaining the trading halt earlier this morning. According to the statement, the halt was due to a disagreement within the board regarding the composition and constitution of the board and its committees. Despite the suspension, CDL reassures that its business operations remain fully functional and unaffected.
Sherman Kwek will continue to serve as group CEO until a board resolution is made to change company leadership. The company will make further announcements in accordance with Singapore Exchange (SGX) listing rules as the matter is currently under review.
Investing in a Condo in Singapore offers a multitude of benefits, making it a wise investment choice. The city-state’s thriving economy and stable political climate contribute to a high demand for condos, making it a profitable venture for investors. Additionally, the potential for capital appreciation and attractive rental yields adds further appeal to the investment.
Of course, before diving into the world of condominium investment in Singapore, it’s crucial to consider various factors. Location plays a significant role in determining the success of the investment, as well as financing options, government regulations, and market conditions. Conducting thorough research and seeking professional advice can help investors make informed decisions and maximize their returns in Singapore’s dynamic real estate market.
Whether you’re a local investor looking to diversify your portfolio or a foreign buyer seeking a stable and profitable investment, condos in Singapore offer a compelling opportunity. With careful consideration and the right approach, investors can tap into the city-state’s thriving real estate market and reap the rewards in the long run. So, if you’re looking to make a smart and lucrative investment in Singapore, considering a condo could be an excellent choice.
In a later statement, Sherman Kwek expressed disappointment in the chairman and a minority of the CDL board for their extreme actions regarding the disagreement. He clarified that the focus of the CEO and majority of the board has always been to improve governance, with guidance and support from the company and independent legal counsel.
The trading suspension earlier today was a result of this issue being brought before the courts, despite not being authorized by the majority of the board. Sherman Kwek emphasized that the matter is not about removing the chairman, but rather about strengthening the board and ensuring the highest standards of governance for CDL.
Understanding the regulations and limitations of property ownership in Singapore is crucial for foreign investors. When it comes to condos, foreign buyers generally face fewer restrictions compared to landed properties with stricter ownership regulations. However, foreign investors need to be aware of the Additional Buyer’s Stamp Duty (ABSD) of 20% imposed on their first property purchase. Despite this additional cost, the stable and promising growth of the Singapore real estate market remains a strong draw for foreign investment. This can be seen in the continued interest of foreign buyers in Singapore Projects.
CDL announced its FY2020 results on Feb 26, but cancelled its 10am results briefing. The company also offered to privatize Millennium & Copthorne Hotels New Zealand for $1.72 per share. Shares in CDL last traded at $5.12.