Singapore's City Developments, Wachovia Group Team Up To Buy Residential Project

Source : AFX News Limited, Nov 5, 2007

SINGAPORE (Thomson Financial) - Singapore property developer City Developments Ltd (CDL) and US-based financial services company Wachovia Group have teamed up to acquire two tower blocks of a luxury residential development project called Cliveden at Grange.

Wachovia (nyse: WB - news - people ) Development Corp controls 60 percent of the joint-venture company, Grange 100 Pte Ltd, while CDL, through City Venture Properties Pte Ltd (CVP), holds the remaining 40 percent.

Grange 100 will buy the two tower blocks comprising 44 apartment units for 432.4 million Singapore dollars from CDL.

The acquisition cost translates to an average price of about 3,750 dollars per square foot (psf) for the project.

'The purchase of two towers by a global property investment powerhouse attests to the high investment potential of Cliveden at Grange, and CDL is very pleased to partner Wachovia in this acquisition,' said Kwek Leng Beng, executive chairman of CDL.

CDL launched Cliveden at Grange, which comprises four 24-storey towers located near the Orchard shopping district, in July this year.

A total of 55 units in the other towers of the project have been sold, with the highest price of 4,162 dollars psf achieved for a four-bedroom apartment unit so far, the company said.

Over 90 percent of the units were sold to foreign buyers from the UK, Australia, Hong Kong, China, Taiwan, Indonesia, France, Korea and Japan, it said.

(1 US dollar = 1.44 Singapore dollars)

pearl.bantillo@thomson.com

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