KUALA LUMPUR (Sept 29): IOI Properties Group Bhd's wholly-owned subsidiary Boulevard View Pte Ltd has won a bid to buy an estimated 0.78ha leasehold land known as the White site at Singapore’s Marina View enclave for S$1.508 billion (approximately RM4.68 billion) under the country's Urban Redevelopment Authority's (URA) invitation to tender which saw Boulevard View becoming the sole bidder.
In a filing with Bursa Malaysia on Wednesday, IOI Properties said the land tender represents an attractive and viable opportunity for the group to venture into a mixed-use development comprising residential, hotel and commercial elements in the Marina Bay area, which is Singapore’s prime business and financial precinct with well-established commercial and office developments besides various cultural and entertainment offerings.
"The proposed development of residential units and a hotel on the land is expected to meet pent-up demand for city living opportunities within CBD of Singapore as the last residential launch in the vicinity was Marina One Residences in 2014.
"The proposed hotel development is expected to further complement the group’s existing developments in Singapore and be a valued addition to its investment properties portfolio.
"Accordingly, the land tender is expected to augur well [for] the future growth of the group as the proposed development is envisaged to contribute positively to the future revenue stream and profitability of the group,” IOI Properties said.
The S$1.508 billion tender consideration will be fully satisfied in cash, and it is expected to be funded via bank borrowings and internal funds.
IOI Properties said that upon receipt by the URA of the full payment of the tender consideration together with the applicable goods and services tax and other related costs for the land transaction, the building agreement (BA) will be signed between Boulevard View and the collector of Land Revenue in Singapore.
"The proposed development to be undertaken on the land will be made in accordance with the terms and conditions within the BA as well as the conditions of the land tender.
The land tender is expected to be completed by fourth quarter of 2021 upon signing of the BA.
AmInvestment Bank Bhd has been appointed as the principal adviser for the land tender.
The URA said in a separate statement that it has awarded the tender for the site at Marina View to Boulevard View.
"The site at Marina View was launched for tender on June 28, 2021. The tender for the site closed on Sept 21, 2021.
"The land parcel was offered for sale on a 99-year lease term,” it added.
IOI Properties said in the Bursa filing that details of the proposed development to be undertaken on the land has yet to be finalised at this juncture as the development plans are still at a preliminary stage.
"Accordingly, further details, inter-alia, gross development value and gross development cost have yet to be ascertained at this juncture,” it said.
Trading in IOI Properties shares was halted between 2.30pm and 3.30pm on Wednesday in conjunction with the announcement.
Later at 4.04pm, its shares were traded one sen or 0.82% lower at RM1.21, giving it a market capitalisation of RM6.67 billion.
IOI Properties’ latest reported net assets per share stood at RM3.55.