Tan Chong International to dispose of non-core assets in $126.3 million deal with CDL Aries

Tan Chong International Limited (TCIL) has announced that it has entered into a deal with City Developments Limited (CDL Aries) to dispose of non-core assets worth $126.3 million. The assets include a multi-storey warehouse and industrial building at 2-6 Kaki Bukit Road 2, Singapore 417837 as well as an adjoining 0.62 hectare plot of land at 2-6 Kaki Bukit Road 1, Singapore 417837.

The non-core assets, which include a joint venture between Tan Chong Motor Holdings Berhad and CDL Aries, were acquired by TCIL in 2002 for $86.5 million. The disposal of these assets is expected to result in an estimated gain of more than $40 million for TCIL, which will be reflected in its financial statements for the current financial year.

The disposal of the non-core assets is part of Tan Chong International’s ongoing strategic review of its portfolio in order to focus on its core businesses of automotive, manufacturing and distribution in the region.

Tan Chong International has been present in Singapore for over half a century, having entered the country in 1966. Since then, it has grown to become one of the largest automotive players in the region. The company has operations in Malaysia, Singapore, Thailand and other parts of ASEAN as well as investments in China and India. Its automotive business includes the distribution of Nissan, Renault and Infiniti vehicles in Singapore and Malaysia, as well as the assembly of Nissan vehicles in Malaysia.

The company has also diversified into other areas such as consumer finance, property development, logistics and engineering services.

The disposal of the non-core assets is expected to further enhance Tan Chong International’s focus on its core businesses, as well as to provide it with additional funds to invest in its core operations. The company’s core automotive operations continue to perform well and are expected to contribute positively to Tan Chong International’s financial performance in the near future.

With the disposal of the non-core assets, Tan Chong International is now well positioned to focus on its core operations in the automotive, manufacturing and distribution sectors in the region. The company is also expected to continue to pursue other strategic initiatives in order to grow its business and expand its presence in the region.

Tan Chong International, a subsidiary of the Tan Chong Group, has announced a $126.3 million deal with City Developments Limited (CDL) Aries. The agreement involves the sale of Tan Chong’s non-core assets, which includes the properties known as The Hillford and The Midtown.

The Hillford and The Midtown are two of the most popular hotels in Singapore and are located in the heart of Orchard Road. The Hillford is a luxurious five-star hotel and The Midtown is a four-star hotel. Both properties offer a variety of amenities and services to guests, including an outdoor pool, fitness centre and spa, restaurants, bars, and event venues.

This deal is part of Tan Chong’s strategic plan to focus on its core business and to reduce its non-core assets. The sale is expected to generate a net gain of approximately $85 million. Tan Chong plans to use the proceeds from the sale to invest in new projects and to strengthen its existing businesses.

CDL Aries has been a long-term partner of the Tan Chong Group, having previously acquired its property located at Changi Road in March 2020. CDL Aries is a subsidiary of City Developments Limited, one of Singapore’s largest real estate companies.

The sale of The Hillford and The Midtown will allow Tan Chong to focus on its core business, which includes automotive, financial services, education, and hospitality. Tan Chong plans to use the proceeds from the sale to expand its automotive business, which includes the distribution and sale of Nissan vehicles in Singapore.

The sale of The Hillford and The Midtown is The Myst expected to be completed in the third quarter of 2021. Tan Chong will continue to manage the properties until the sale is completed. CDL Aries is expected to take over the management of the properties once the sale is completed.

The sale of The Hillford and The Midtown is part of Tan Chong’s efforts to streamline its business and focus on its core automotive business. The sale is expected to generate a net gain of approximately $85 million and will allow Tan Chong to invest in new projects and strengthen its existing business.