SINGAPORE: City Developments Limited's (CDL) refreshed strategy for the next three years will see the group targeting to sell S$6 billion (US$4.7 billion) worth of assets to unlock value, with chief executive Sherman Kwek promising "unwavering focus" on strong execution of the roadmap.

With Mr Kwek noting that CDL has S$36 billion of assets on its balance sheet, the planned divestment will represent one-sixth of the company's assets.

Out of the planned divestments, the company targets 30 per cent of the divestments to come from hotels and 45 per cent from commercial properties. The remaining 25 per cent of divestments is targeted to come from its legacy residential, living and other parts of its portfolio.

CDL announced the strategic review to maximise shareholder returns earlier this year, indicating its intention to unlock value from mature and non-core assets. This came around a year after a public feud between Mr Sherman Kwek and his father, CDL executive chairman Kwek Leng Beng.

At that time, the elder Mr Kwek accused his son of an attempted "coup" and filed a lawsuit over alleged governance lapses, before dropping the case two weeks later.

During an analysts' briefing on the strategic review, the younger Mr Kwek responded to a question about how shareholders can be confident that individual leadership differences will not get in the way of institution-level priorities.

"What happened last year was unfortunate, but it's something that we hope not to ever see happen again," he said.

CDL's board is united on the strategic review and has approved everything that the company announced on Monday, said Mr Kwek.

"This is something that the board and management are aligned on, so I think we want to go forth and really focus on execution," he said, adding that he is confident that they can deliver on the plans.

Members of CDL's senior management team on a panel at the company's strategic review briefing on Sep 28, 2026.

The elder Mr Kwek did not attend the briefing on Monday, and a question on succession directed at him was left unanswered. However, the press release included a statement from him.

"For over six decades, CDL has built a strong and diversified real estate and hospitality portfolio supported by deep capabilities and quality assets," he said.

"The strategic review builds on these strengths, while sharpening our priorities and setting a clear direction for the group." NEW INVESTMENTS, CASHFLOW PROJECTIONS As part of the strategic review, CDL also projected a S$6 billion cash inflow over the next three years. This is expected to come from property development sales, future cash collections from contracted sales and its existing development pipeline.

CDL will also deploy S$5 billion into new investments for future growth, with 60 per cent of the funds likely to go into projects in Singapore. The group plans for 30 per cent of the capital to be invested in China and Japan, and the rest into other markets.

Mr Sherman Kwek said the S$5 billion is not a rigid quota, and that a lot of the new investments will be opportunity-led, both in Singapore and overseas.

It will depend on the number of land tenders that CDL can win or whether the projects meet the company's risk-adjusted return targets. If the right opportunities do not materialise overseas, then Singapore may become a bigger part, he said.

"It's a framework to guide us and it's our roadmap going forward. We know where we are willing to put capital to and to what sort of extents, we know where we don't want to put capital to," he said.

The company said the refreshed strategy is aimed at delivering sharper strategic focus, stronger capital discipline and sustainable long-term shareholder returns.

To that end, the group intends to distribute a dividend payout of more than 35 per cent annually, on reported profit after tax and minority interests.

PAST FAMILY FEUD In February last year, Mr Kwek Leng Beng said his son and a group of directors bypassed CDL's nomination committee to push through changes to the board without proper review.

At the time, Mr Sherman Kwek took aim at Dr Catherine Wu, then an independent adviser to the board of a CDL subsidiary, Millennium & Copthorne Hotels Limited. He said she had interfered in matters "going well beyond her scope" and had "enormous influence". Dr Wu resigned from her role shortly after.

The public tussle came to an end in March 2025 after Mr Kwek Leng Beng said he would drop legal action against his son. He said at the time that the board members had agreed to set aside their differences for the “greater good” of the company and its stakeholders.

On Monday, Mr Kwek fielded a question about what motivates him to keep working hard despite being "independently financially well off".

Beyond the general desire to accomplish certain career achievements, he and other members of the team care deeply about CDL, and he wants to honour his grandfather's legacy.

"I've always been driven by the fact that I want to perpetuate our family legacy, especially my grandfather, who's had a very deep and meaningful influence on me when I was growing up," he said. "That's been a key driving factor for me."