City Developments (CDL) is attempting to put its ill-fated $1.9 billion investment in Sincere Property Group behind. By any measure, it is not a small amount of money, even for billionaire property tycoons.

As a result of a $1.78 billion impairment for its investment in Sincere, CDL’s NAV was down 19.1% y-o-y to $9.38 as at Dec 31, 2020. NAV including fair value gains on properties but with hotels stated at cost, was $14.26 per share. If all the properties were held at fair value, NAV would be $16.88.

Gearing has also risen from 62% at Dec 31, 2019, to 93% at Dec 31, 2020, based on historical cost accounting. Gearing would also have fallen to 62% versus 43% a year ago if fair value was included.

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