<article>The US private equity <a href="http://www.dealstreetasia.com/?s=Blackstone+Group" target="_blank">Blackstone Group</a> LP and Malaysia’s <a href="http://www.dealstreetasia.com/?s=CIMB+Bank+" target="_blank">CIMB Bank </a>are investing in Singapore’s <a href="http://www.sentosacove.com/" target="_blank">Sentosa Cove project </a>in an S$1.5b ($1.19 billion) refinancing deal.</article>

The US private equity <a href="http://www.dealstreetasia.com/?s=Blackstone+Group" target="_blank">Blackstone Group</a> LP and Malaysia’s <a href="http://www.dealstreetasia.com/?s=CIMB+Bank+" target="_blank">CIMB Bank </a>are investing in Singapore’s <a href="http://www.sentosacove.com/" target="_blank">Sentosa Cove project </a>in an S$1.5b ($1.19 billion) refinancing deal.
Both companies are investing in Singapore’s <a href="http://www.cdl.com.sg/" target="_blank">CITY Developments Limited’</a>s (CDL) Quayside Collection &#8211; an upscale integrated development on the resort island of Sentosa, whose assets include the five star hotel <a href="http://www.wsingaporesentosacove.com/" target="_blank">W Singapore</a>, a waterfront F&amp;B outlet and retail property Quayside Isle and residential apartments.
<a href="http://www.blackstone.com/businesses/aam/tactical-opportunities" target="_blank">Blackstone’s Tactical Opportunities Fund </a>will invest S$367 million ($293 million) in these projects CIMB Bank will contribute S$102 million ($81.5), while concurrently, <a href="http://www.dealstreetasia.com/?s=DBS+Bank+Ltd+" target="_blank">DBS Bank Ltd </a>and <a style="color: #0000ff; text-decoration: underline;" href="http://www.ocbc.com/" target="_blank">Oversea-Chinese Banking Corporation </a>(OCBC) Limited will provide S$750 million ($599.85 million) in value of senior loan facilities, the companies said.
CDL, through its wholly-owned subsidiary Astoria Holdings Limited, will contribute S$281million ($224.7 million), ensuring that it retains an economic interest in the Sentosa Cove project post the refinancing.
Currently CDL’s holdings in Quayside Collection is through Cityview Place Holdings. Baynes Investment, the 100 per cent owner of Cityview Place Holdings, is wholly owned by CDL.
The deal will see CDL, Blackstone and CIMB form a special purpose vehicle Sunbright Holdings to infuse S$750 million ($599.85 million) for a capital instrument called profit participation securities (PPS).
CDL said that the PPS will see the investors receive a fixed payout based on five percent interest per annum for a period of five years, in addition to a participation in the cashflows over the period that they hold the PPS.
CDL executive chairman Kwek Leng Beng said, “This offers investors a rare opportunity to participate in the cash flow from the high-quality assets in Sentosa Cove. By leveraging on the operating strength and the solid cashflows of the Quayside Collection, we will be able to build and deploy capital for our global plans.”
“There is no other cluster of upscale assets with similar waterfront living in Singapore. Quayside Collection’s exclusivity makes this cash flow participation platform all the more unique for investors. CDL remains a substantial investor in the PPS, reflecting our commitment and belief in our Sentosa Cove assets,” Kwek added.
Stephen A Schwarzman, chairman, co-founder and CEO of Blackstone said, &#8220;At Quayside Collection in Sentosa, CDL has created a distinctive portfolio of assets. We are delighted to partner them in this transaction and further cement our long-term commitment to Singapore.
Blackstone in betting big on Asia and is set to hold the <a href="http://www.dealstreetasia.com/stories/blackstones-asia-fund-set-for-5b-final-close/" target="_blank">final closing </a>of its real estate fund for the continent. The<a href="http://www.blackstone.com/businesses/aam/real-estate" target="_blank"> BlackStone Real Estate Partners (BREP) Asia fund </a>has reached its hard cap of $5 billion, making it the largest ever real estate fund devoted to the continent, and has an investment period of four years. Blackstone has already invested one-third of the fund, so far.

Blackstone, CIMB invest in CDL's Sentosa project

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Blackstone, CIMB invest in CDL's Sentosa project

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