CDL's $1.6 Billion Perpetual Securities Programme

City Developments Limited (CDL) has established a S$2 billion multicurrency perpetual securities programme, with an initial issuance size of approximately S$1.6 billion, arranged by United Overseas Bank (UOB). The programme provides Singapore's second-largest listed developer with a flexible capital-raising tool to fund acquisitions, refinance existing obligations, and strengthen its balance sheet ahead of what many analysts expect will be an active deal cycle across Asia-Pacific in the second half of 2026.

  • Programme Size: S$2.0 billion (multicurrency)
  • Initial Issuance: ~S$1.6 billion
  • Arranger: United Overseas Bank (UOB)
  • CDL Market Cap: ~S$7.2 billion (as of April 2026)
  • CDL Net Debt-to-Equity: 0.56x (FY2025)

Perpetual securities are classified as equity rather than debt under Singapore accounting standards, meaning CDL can raise substantial capital without worsening its gearing ratio. For a developer that reported a net debt-to-equity ratio of 0.56x at the end of FY2025, this structure offers meaningful headroom. The instrument also gives CDL discretion over coupon payments, a feature that provides additional liquidity flexibility during periods of market stress or when capital is better deployed into higher-returning projects.

Market Context: Capital Markets Reopening for APAC Developers

CDL's programme arrives at a time when Asian real estate capital markets are showing renewed activity after nearly two years of caution driven by elevated interest rates. Across the region, developers and institutional investors are repositioning portfolios. Ares Management, the US-based alternative asset manager, has expanded its Japan logistics footprint under the Marq brand, acquiring three new warehouse assets in Greater Tokyo and Osaka. Japan's logistics sector continues to attract foreign capital, supported by e-commerce penetration rates that exceeded 14 percent in 2025 and vacancy rates in prime logistics facilities hovering below 3 percent in key metropolitan areas.

Meanwhile, transaction volumes across Asia-Pacific commercial real estate rose 12 percent year-on-year in Q1 2026, according to preliminary data from MSCI Real Assets. Singapore, Japan, and Australia accounted for approximately 60 percent of that volume, underscoring the concentration of institutional capital in markets perceived as transparent and liquid. CDL's perpetual securities issuance positions the company to compete aggressively for assets in these very markets, particularly in the office repositioning and residential segments where it has historically been most active.

What This Means for Buyers and Investors

For property investors tracking Singapore-listed developers, CDL's move signals confidence in near-term deployment opportunities. The company has publicly stated its intention to grow its global portfolio beyond S$23 billion in assets under management, with a focus on fund management income streams alongside its traditional development profits. A well-capitalised CDL is likely to pursue en-bloc acquisitions in Singapore, where collective sale activity has picked up markedly in early 2026, as well as selective office and hospitality deals in gateway cities such as London, Tokyo, and Sydney.

The broader takeaway for the APAC real estate market is that capital availability is improving. With perpetual securities, green bonds, and private credit all providing alternative funding channels, developers are no longer constrained to traditional bank lending or equity raises. This diversification of funding sources should support transaction volumes through the remainder of 2026, particularly in the S$100 million to S$500 million deal bracket where competition among buyers has been most intense. Investors should watch CDL's first drawdown under the programme closely — the pricing and tenor will serve as a useful benchmark for the cost of equity-like capital in Southeast Asia's real estate sector.