PETALING JAYA: IOI Properties Group Bhd has bought a 0.78ha plot of land in Marina View, Singapore, for S$1.51 billion (RM4.68 billion) following a successful bid via its wholly owned subsidiary, Boulevard View Pte Ltd.
The acquisition of the land in Singapore’s central business district (CBD), was done through a tender by the Urban Redevelopment Authority (URA), acting as an agent for the Singaporean government.
According to its Bursa filing, the group’s tender consideration was arrived at after taking into consideration the location of the land, the permissible development plans and the minimum bid price.
From the information provided by the URA, the 99-year leasehold land is estimated to yield more than 100,000 square metres (sq m) of space for 905 private residential units, 540 hotel rooms, and 2,000 sq m gross floor area of commercial space.
IOI Properties stated that the rationale behind the acquisition is due to the land’s attractive opportunity for it to venture into a mixed-use development in the strategic location. The proposed development is expected to meet pent-up demand for city living opportunities within the CBD given the last residential launch in the vicinity was in 2014.
It added that the proposed hotel development is expected to further complement the group’s existing developments in Singapore and be a valued addition to its investment properties portfolio.
The group said the tender consideration will be satisfied in cash and it is expected to be financed with bank borrowings and/or internally generated funds.
