CityDev sells its stakes in Summervale Properties to raise $977.6m

It plans to expand its fund management business to $5b.

Singapore's second-largest developer City Developments Ltd. is selling its equity stake in a 156-unit luxury condominium project in the city-state.

According to Bloomberg, CityDev said it will sell its shares in Summervale Properties, the company which owns the Nouvel 18 condo, to high net worth investors.

The developer is structuring the deal as a so-called profit-participation security, which involves the sale of S$102m in equity and the remainder in senior loans and notes.

This move will potentially free up $977.6m, which the group will use to extend its fund management business.

It aims to expand the said platform to $5b within five years.

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