PETALING JAYA: IOI Properties Group Bhd has successfully bid for 2.69 acres of leasehold land at Central Boulevard in the Marina Bay area for a tender consideration of S$2.57bil (RM7.77bil).
This translates to S$18,180 (RM56,557) per square meter of gross floor area, or S$1,688.98 per sq ft.
In a filing on Bursa yesterday, IOI Properties said the tender, carried out by its wholly-owned subsidiary Wealthy Link Pte Ltd, presented an opportunity for the group to venture into prime office tower development with complementary mixed-use development in Singapore’s central business district (CBD).
“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.
“However, the proposed development 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,” said IOI Properties.
The price of the land was arrived at after taking into consideration the land’s location, permissible development plans intended as well as the minimum bid price set by the Urban Redevelopment Authority, Singapore.
It will be fully satisfied in cash and funded via bank borrowings or internally generated funds.
The land tender augurs well for the growth of the IOI Properties as the proposed development is expected to contribute positively to the group’s future revenue stream and profitability.
Although expected to be completed by the first quarter of 2017, the land tender will not have any material effect on the earnings and earnings per share (EPS) of the group for the financial year ending June 30, 2017.
However, the ensuing financial years will see positive contribution to the group’s future earnings and EPS.
Located within the Marina Bay area, it is located opposite Lau Pa Sat, also known as Telok Ayer Market.
Its close to as One Raffles Quay and Marina Bay Financial Centre makes it a much sought-after site for a prime office development.
IOI Properties said the future development will be linked directly to surrounding developments at One Raffles Quay, Marina Bay Financial Centre and office clusters at Raffles Place and Shenton Way via an extensive network of underground and second-storey pedestrian links.
The land is seamlessly connected to the adjacent Downtown Mass Rapid Transit (MRT) Station, nearby Raffles Place MRT Station and the future Shenton Way MRT Station.