CITY Developments Limited (CDL)’s subsidiary, CDL Investments New Zealand (CDI), has entered into unconditional agreements to purchase 10.1 hectares of land in Christchurch, New Zealand, for NZ$17.1 million (S$14 million).
On Friday (Jul 12), the company said the land, to be part of an industrial park precinct, could potentially yield about 15 to 17 industrial lots.
CDI’s chief executive Jason Adams said the purchase would enable the company to expand its commercial developments to South Island, in line with its diversification strategy.
He noted that the land’s current industrial zoning means it is ready to be developed immediately.
“The size of the land will give us opportunities to develop and then sell some of the lots in the next few years,” he said, adding that the company could also retain some of it and add it to its commercial portfolio to grow its rental income.
CDI noted that the acquisition would be funded by retained earnings and that no borrowings would be required. The purchase settlement is slated to take place in September.
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Shares of CDL were trading 1.5 per cent or S$0.08 higher at S$5.50 as at 2.15 pm on Friday.
