Citing Disagreements Over China Investment, Kwek Leng Peck Resigns From CDL Board

Kwek Leng Peck, a cousin of City Developments CEO Kwek Leng Beng, has “regrettably” resigned from the real estate giant’s board. Leng Peck, according to his letter of resignation cited by CDL, disagreed with CDL’s investment in Sincere Property Group, including continuing financial support totaling $ 1.9 billion for the China-based developer. Additionally, Leng Peck has “reservations” with CDL’s focus on managing its hospitality unit, Millennium & Copthorne Hotels. Earlier this year, CDL acquired a 51% stake in Sincere for RMB 4.4 billion. It has also subscribed bonds worth $ 230 million and granted a working capital loan of 650 million yuan. CDL has also provided a liquidity support commitment totaling RMB 1.5 billion in connection with the bonds issued by Sincere due on October 26. It is also offering a corporate guarantee of RMB 1.5 billion for loans taken out by Sincere. According to CDL in an announcement by SGX, not thanks to Covid-19, the liquidity position in Sincere is challenging, which has added further pressure to the property cooling measures in China. “Sincere’s planned asset divestment plan for some of Sincere’s retail, hotel, office and retail park assets is now expected to lighten its debt burden on investment property exposure. and propping up its residential development plans as a key strategy to transform this platform take place over a longer period of time due to the current climate, ”adds CDL. CDL will appoint an outside financial advisor to help evaluate and review your investment in Sincere. “The impact on the group or its financial reports will be prepared and calibrated together with the external financial advisor,” says the company. At 2:20 p.m., CDL shares were down 25 cents, or 3.28%, to trade at $ 7.38.