IOI Prop secures Xiamen land for RM1.4bil in competitive bidding

Request for photos of IOI Corporation building, IOI Putrajaya, IOI City Mall and IOI Properties to update for print and online in Putrajaya. MOHD SAHAR MISNI/The Star *** Local Caption ***

KUALA LUMPUR: IOI Properties Group Bhd (IOI Prop) has successfully tendered for a 6.2-acre leasehold land in Xiang An central business district, Xiamen, for 2.324 billion yuan (RM1.41bil) from the Xiamen Bureau of Land Resources and Real Estate Management.

The property development and investment group said in a statement to Bursa Malaysia that its 99.8% owned subsidiary IOI (Xiamen) Properties Co Ltd (IOIPG) would undertake residential (57,200 sq m) and commecial development (3,000 sq m) as well as building a community service centre on the land, located within an area proposed to be turned into an integrated eco city.

IOI Prop said it had not determined the gross development value and gross development costs, adding that the project development plans were still at a preliminary stage.

It noted that key future developments in the vicinity included schools, a new Xiang An hospital and a new Xiamen international airport, which would be completed in year 2020.

IOI Prop said the tender consideration would be funded through sources of funding available to the group, including internally generated funds.

“The land tender provides an opportunity for the group to replenish its existing land bank in China, a location that still provide vast investment and development potential to the group,” it said.

“The group has been sourcing for land banks with development potential following the completion of the group’s maiden property development i.e. IOI Park Bay in Jimei and the successful launch of its second Jimei project, IOI Palm City.”