CDL in the red with $1.92b loss on Sincere Property joint venture, hotel impairments

SINGAPORE (THE BUSINESS TIMES) – City Developments Limited (CDL) sank into the red with a net loss of $1.92 billion for its second half ended Dec 31, 2020, compared with a profit of $202.6 million a year ago.

This was largely due to the property developer’s move to write down 93 per cent of its total investment in Sincere Property Group, amounting to $1.78 billion, which “distorted” the group’s second-half and full-year results for fiscal 2020, it said in a bourse filing on Friday (Feb 26).

“Taking into consideration Sincere Property’s debts in the next 12 months and China’s ‘three red lines’ policy to cap borrowings for real estate developers, the group is cautious that Sincere Property may face significant liquidity challenges,” CDL said.

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