How CDL of Singapore’s 4th richest man Kwek Leng Beng performs before family dispute

The biggest listed property developer in Singapore saw revenue dropping 33.8% to SGD3.3 billion (US$2.4 billion), according to its financial report.

Profit plunged 36.6% to SGD317 million.

City Developments Limited (CDL) logo is seen on a building in Singapore May 26, 2016. Photo by Reuters

This decline is partly attributed to the absence of the previous year's substantial gains from a large joint-venture project and the sale of a Tokyo property, as well as increased financing costs and project delays, the report said.

Revenue from property development sank 66% to SGD939 million.

Its hotel operations, however, experienced an 8% revenue growth, primarily due to the acquisition of two hotels, the Sofitel Brisbane Central and the Hilton Paris Opera.

City Developments Limited shares have been spiraling downward since 2018 partly due to its major debts accumulated through its China investment, which was spearheaded by CEO Sherman Kwek, son of Leng Beng.

The company suspended the trading of its own shares on Tuesday due to the management conflict. They stood at SGD5.12, down 11.4% from a year earlier.

In a recent statement to the media, Leng Beng blamed his son for the underperformance of the company which had resulted in significant losses.

Leng Beng therefore sought to remove Sherman from the CEO post earlier this month due to his "serious lapses of corporate governance."

On Tuesday Leng Beng filed a lawsuit against the son, alleging that Sherman and his collaborators were attempting to set up "a coup" as they sought to take over the company, which is part of a business empire that Leng Beng and his father spent over 60 years to build.

"The reckless actions of a faction seeking to consolidate unchecked control not only undermine the foundations of City Developments’ governance but also put at risk the very legacy we have built over the decades."

Sherman, however, assured that everything he did was for the good of the company.

He claimed that he and a majority of the board were "disappointed" in his father’s decision to bring the dispute to court.

Leng Beng and his family share a combined net worth of US$11.5 billion, making him the fourth richest billionaire in Singapore, according to a ranking list by Forbes last September.

City Developments Limited has a market capitalization of SGD4.6 billion (US$3.4 billion) and properties in nearly 30 countries.

Among its assets are 150 hotels worldwide, including St. Regis Singapore and JW Marriott Hong Kong.