IOI Properties to go alone with Singapore property venture

KUALA LUMPUR: IOI Properties Group Bhd has called off its proposed joint venture with Hongkong Land International Holdings Ltd to undertake a property development project at a land parcel at Central Boulevard in Singapore.

It said on Tuesday the proposed JV would have been undertaken through Wealthy Link Pte Ltd as the JV company to jointly own and undertake a proposed development and management of a land parcel.

After calling off the JV, IOI Properties will now go ahead with the development on its own.

In a statement to Bursa Malaysia, IOI Properties said: “The board of directors of the company wishes to announce that the company has terminated the memorandum of agreement with HKLI by due notice dated March 13, 2018 for the non-fulfillment of certain conditions precedent,” it said.   

To recap, Wealthy Link had successfully tendered for the Central Boulevard site on 11 November 2016 from the Urban Redevelopment Authority (URA) acting for and on behalf of the government of Singapore.

The tender sum was about S$2.57bil. Wealthy Link had obtained the provisional permission from the URA in February 2018, to start work on the land.

The tender for the piling works has been awarded and construction has already commenced.

“The termination will not impact the development of the Central Boulevard site as the group has sufficient in depth expertise, financial capabilities, track record of other completed projects in Singapore and is confident that it will be able to proceed with and complete the proposed development of the Central Boulevard Site,” it said.

Corporate News , Property