Singapore's real estate firm CDL unveils $1 billion China property deal

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Singapore based real estate company City Developments (CDL) announced on Wednesday that the firm intended to invest almost $1 billion in China including the purchase of an indirect stake in Sincere Property Group.

In a statement, the firm said that the main deal, which includes equity and debt, worth maximum of 5.5 billion yuan ($800 million). The deal will see CDL acquire a 24% indirect stake in Sincere Property Group via its offshore investment vehicle.

It added it had also entered a deal with Sincere to acquire a 70% stake in a property in Shanghai's business district for 1.2 billion yuan.

The investments would be funded through internal cash and credit facilities.

"This transformational deal is CDL's single largest investment in China to date," CDL Group CEO Sherman Kwek said.

CDL reported a profit of S$199.6 million ($145.7 million) in the first quarter of 2019 on Wednesday, versus S$85.3 million in Q1 2018.