A man jogs along the Marina Bay next to the financial business district office buildings in Singapore. IOI Properties has secured the first piece of land sold in Marina Bay in nine years. - AFP pic
KUALA LUMPUR: IOI Properties Group Bhd
has successfully bid for 1.09ha prime site in Singapore’s Marina Bay area for a tender consideration of S$2.57bil (RM7.99bil).
The 99-year leasehold land, located in the republic’s premier financial and business district, has a maximum permissable gross floor area (GFA) of 141,294 sq metres, or about S$18,180 (RM56,576) per sq metre, it told Bursa Malaysia.
It was reported that the price bid by IOI Properties’ subsidiary Wealthy Link Pte Ltd was a record for a government land sale.
IOI Properties said the consideration would be fully satisfied in cash and funded via bank borrowings or internally generated funds. However, the breakdown has not been finalised.
The company said details of the proposed development to be undertaken, including gross development value, also had not been finalised as the development plans were still at a preliminary stage.
The group, however, views the land tender as an opportunity to venture into prime office tower development with complementary mixed-use development located in the Central Business District of Singapore with close proximity to prestigious commercial developments such as One Raffles Quay and Marina Bay Financial Centre.
“The proposed development to be undertaken on the land is expected to be attractive to major financial institutions and multinational corporations, which is envisaged to further complement the group’s existing developments in Singapore, as well as an attractive addition to the group’s investment properties portfolio,” it said.
At least 100,000 sq m of the “white site” plot must be allocated for office use, while retail uses such as shops and restaurants are capped at 5,000 sq. The remaining GFA can be for additional office, commercial school, hotel, serviced apartments and/or residential uses.
IOI Properties said the land tender was expected to be completed by the first quarter of calendar year 2017. It will convene an EGM for the proposed ratification before the second quarter of calendar year 2017.