IOI Properties Announces the Successful Acquisition of Singapore’s Marina View Plot by a Subsidiary

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IOI Properties Group Bhd announced on Wednesday (Sept 29) the successful bid of its wholly-owned subsidiary Boulevard View Pte Ltd to acquire an estimated 0.78ha (7,817.6 square metres) leasehold land known as the White site in Singapore’s Marina View enclave for S$1.508 billion (approximately RM4.68 billion) through the country’s Urban Redevelopment Authority’s (URA) invitation to tender.

IOI Properties said in a statement to Bursa Malaysia that 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 Singapore’s Marina Bay area, which is home to well-established commercial and office developments as well as numerous cultural and entertainment venues.

“The proposed building of residential apartments and a hotel on the land is intended to satisfy pent-up demand for city living alternatives within Singapore’s central business district, as the most recent residential launch in the region was Marina One Residences in 2014.

“Additionally, the proposed hotel construction is projected to complement the group’s current developments in Singapore and to be a valuable addition to the group’s investment property portfolio.

“As a result, the land tender is projected to bode well for the group’s future expansion,” IOI Properties said. “The proposed development is likely to contribute positively to the group’s future revenue stream and profitability.”

According to IOI Properties, the S$1.508 billion tender consideration will be paid in full in cash and is likely to be funded through bank borrowings and internal funds generated by IOI Properties.

IOI Properties stated that upon receipt by the URA of the full tender consideration, including Goods and Services Tax, and other charges associated with the land transaction, the building agreement (BA) between Boulevard View and the Singapore Land Revenue collector will be signed.

“The proposed development on the property shall comply with the terms and conditions of the BA as well as the terms and conditions of the land tender.”

“Subject to unforeseen circumstances, the land tender is anticipated to conclude by the fourth quarter of calendar year 2021, following the signing of the BA.

“AmInvestment Bank Sdn Bhd has been designated as the land tender’s key adviser,” IOI Properties said.

Meanwhile, the URA announced in a separate announcement on Wednesday (Sept 29) that it has awarded Boulevard View the tender for the Marina View site.

“On June 28, 2021, the Marina View property was put up to tender. The site’s tender period ended on September 21, 2021.

“The land lot was made available for lease on a 99-year basis,” the URA stated.

IOI Properties stated in a Bursa filing on Wednesday (Sept 29) that the details of the proposed development on the land have not been finalised at this time due to the preliminary nature of the development plans.

“As a result, additional data, including gross development value and gross development cost, have not been determined at this time,” IOI Properties stated.

IOI Properties stated in a separate market filing that its share trading was suspended between 2.30pm and 3.30pm on Wednesday in line with the successful land bid announcement.

Later that afternoon, at 4.04pm, its shares were trading one sen or 0.82 percent down at RM1.21, giving the business a market value of approximately RM6.67 billion based on its 5.51 billion issued shares.

The latest reported net assets per share for IOI Properties was RM3.55.

Published by Zack Baharum

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