City Developments : Announcement on Impairment of Assets by a subsidiary, Millennium & Copthorne Hotels plc

General Announcement::Announcement on Impairment of Assets by a subsidiary, Mil...

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General Announcement::Announcement on Impairment of Assets by a subsidiary, Millennium & Copthorne Hotels plc

Issuer & Securities

Issuer/ Manager

CITY DEVELOPMENTS LIMITED

Securities CITY DEVELOPMENTS LIMITED - SG1R89002252 - C09

Stapled Security No

Announcement Details

Announcement Title

General Announcement

Date & Time of Broadcast 12-Feb-2016 17:11:27

Status New

Announcement Sub Title Announcement on Impairment of Assets by a subsidiary, Millennium & Copthorne Hotels plc

Announcement Reference SG160212OTHR2MZ9

Submitted By (Co./ Ind. Name) Enid Ling Peek Fong

Designation Company Secretary

Description (Please provide a detailed description of the event in the box below)

Please refer to the attached Announcement in relation to the subject matter.

Attachments

CDL_MnC_120216.pdf

MnC_Impairment_of_Assets12Feb2016.pdf Total size =29K

Tweet O

http://infopub.sgx.com/Apps?... 1 12/2/2016

The Board of Directors of City Developments Limited ("CDL" or the "Company") refers to the attached announcement of Millennium & Copthorne Hotels plc ("M&C"), its listed subsidiary on the London Stock Exchange, issued on 12 February 2016 whereby M&C has announced that following its annual impairment testing, it expects to recognize a net charge of approximately £43 million against M&C's pre-tax profits in its accounts for the year ended 31 December 2015 ("FY2015"). Further details of the net charge are set out in M&C's announcement which is attached to this announcement.

The Company wishes to highlight that CDL continues to adopt its conservative policy of accounting for its investment properties and property, plant and equipment at cost less accumulated depreciation and accumulated impairment losses. M&C, on the other hand accounts for investment properties at fair value, and its property, plant and equipment (land and buildings) at cost, except as allowed under IFRS 1 transition rules, less depreciation and any provision for impairment.

The impact of the net impairment charge made by M&C on CDL Group's Profit Attributable to Owners of the Company (referred as PATMI) for FY2015 is approximately S$48 million.

After taking into account the net impairment charge, CDL still expects to remain profitable for FY2015. The Company will be announcing its unaudited financial results for FY2015 on 25 February 2016.

By Order of the Board

Shufen Loh @ Catherine Shufen Loh Enid Ling Peek Fong

Company Secretaries 12 February 2016

Millennium & Copthorne Hotels plc ("M&C") announces today that following its annual impairment testing, it expects to recognise a net charge of approximately £43m against pre-tax profits in its accounts for the year ended 31 December 2015. The final figures will be included in M&C's full year results, which will be released on 19 February 2016.

The net charge includes £76m of impairment losses relating primarily to four of M&C's properties located in the operating segments of New York, Rest of Europe and Rest of Asia; offset by net revaluation gains of approximately £33m on M&C's investment properties.

Performance of those assets, especially the four hotels referred to above, that are to be impaired is being closely monitored. With regard to such properties, management is considering appropriate strategies to further control costs and increase revenue, including exploring additional sales channels, enhanced sales and marketing efforts and the implementation of brand initiatives. Meanwhile, the ongoing asset refurbishment programmes are continuing and are anticipated to yield benefits in the future.

Enquiries

Jonathon Grech, Group General Counsel and Company Secretary Peter Krijgsman, Financial Communications (Media)