New York-based private equity firm Blackstone Group and CIMB Bank of Malaysia will provide S$469 million of financing for a luxury hotel, retail and residential development by Singapore’s City Developments Ltd. on Sentosa Island.
The two companies will receive a 5% coupon maturing in five years, as well as various cash flows from the project. They will also have rights on the proceeds from the sale of the residential properties. Both said they were prepared to hold their investments for several years to allow the market to recover and ensure higher returns.
Kishore Moorjani, a managing director overseeing Blackstone’s Tactical Opportunities Group, said the company was looking at the long term with regard to the residential properties, noting “We will do very well on this in the long term.”
City Developments, meanwhile, is looking to buy in Australia and China, as well as Japan, the U.K. and the U.S.
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