City Developments Ltd. (CDL)—controlled by billionaire Kwek Leng Beng and his family—has agreed to sell a majority stake in a mixed used office, hotel and residential complex in the Singapore central business district to its Malaysian partner, IOI Properties.

Under the deal, IOI Properties—controlled by controlled by Malaysian billionaire brothers Lee Yeow Chor and Lee Yeow Seng, whose family made their fortune from palm oil—will buy CDL’s 50.1% stake in South Beach in a deal valuing the the property at S$2.75 billion ($2.1 billion), according to a joint statement from the partners.

Upon completion of the deal in the third quarter of this year, IOI Properties will fully own the commercial property, comprising the JW Marriott Hotel in a 45-story skyscraper, a 34-story office tower and retail space. The 190-unit South Beach Residences has been fully sold since September 2021.

“The acquisition of the 100% equity stake in this landmark development marks a significant strategic expansion for IOI Properties,” Lee Yeow Seng, group CEO of IOI Properties, said in the statement.

IOI Properties has been expanding its portfolio in Singapore. It recently opened the IOI Central Boulevard Towers in Marina Bay. Built at a cost of about S$4 billion (including the land cost), the complex comprises a seven-story podium, a 16-story tower and a 48-story skyscraper. Nearby, the company is developing yet another landmark, a W Residences Marina View, comprising a hotel and a residential condominium.

With a combined net worth of $5.2 billion, the Lee brothers are among the wealthiest in Malaysia. They are the sons of the late Lee Shin Ying, who built a thriving palm oil and property business until his death in 2019. Lee Yeow Chor runs the palm oil business under separately listed IOI Corp, while his younger brother Yeow Seng helms the real estate company.

For City Developments, the divestment of its stake in South Beach would help the company pare down its debts, which has eroded its bottomline. CDL’s net profit slumped 37% to S$201 million in 2024 amid weaker contributions from property development and increased finance charges.

Sherman Kwek, group CEO of CDL, said proceeds from the divestment will help reduce the company’s gearing and redeploy capital. The company has been selectively developing new residential projects in Singapore amid softening demand.

City Developments this week submitted the highest bid of S$608 million for a residential plot in the western Singapore suburb of Jurong. It plans to build five 16-story residential blocks with a total of 575 units on the site, which sits right next to the Lakeside MRT station.

“We look forward to creating a vibrant residential community that complements the ongoing transformation of the Jurong Lake District into a vibrant lifestyle and commercial hub, aligned with Singapore’s broader decentralisation strategy and future growth corridors,” Sherman Kwek said in a separate statement.