IOI and Hongkong Land to jointly develop Central Boulevard site | Singapore Property News

IOI and Hongkong Land to jointly develop Central Boulevard site

13 Jun 2017
Property News
IOI and HKL


MALAYSIA-listed IOI Properties is linking up with Hongkong Land for the development and management of a white site in Central Boulevard in Singapore.

A memorandum of agreement was signed on Monday between the two real estate-focused groups for the joint development of this site IOI won through a record bid last November.

The prime land parcel, which measures about 1.1 hectares, is located next to One Raffles Quay and close to Marina Bay Financial Centre.

A joint press release of the two groups said that the development envisaged for the site comprises two office towers of about 1.26 million square feet of leasable space and a small retail podium of about 30,000 sq ft.

IOI will hold 67 per cent of the joint venture company for this site development, with Hongkong Land holding 33 per cent. The completion of the joint venture is subject to regulatory and other approvals.

The announcement of the joint venture was made almost three months after IOI completed a rights issue that reportedly raised in excess of 2 billion ringgit (S$650 million) proceeds.

In its prospectus for the rights issue, IOI highlighted its plan to start work on the Central Boulevard site at the end of 2017 or in early 2018.

It described this proposed development as offering "excellent views for tenants with the Marina Bay waterfront to the north-east, green open spaces to the south-east, and across the CBD (Central Business District) of Singapore to the west".

IOI's wholly owned subsidiary Wealthy Links Pte Ltd put in a winning bid of S$2.57 billion for the Central Boulevard site that was tendered out under the Government Land Sales Programme.

IOI's bid, which set a new benchmark of S$1,689 per sq ft per plot ratio equivalent for a Government Land Sale site in Singapore, beat seven others including a then joint bid between Hongkong Land and Cheung Kong Holdings.

It would appear through this joint venture with IOI, Hongkong Land will not be side-tracked as its chief executive Robert Wong had said, from the group's plan to expand its portfolio of prime commercial properties in Marina Bay.

Executive director of Hongkong Land, Rob Garman, told The Business Times that "since the award of the project (to IOI), market conditions have improved as a result of limited future supply and recent market transactions supporting higher rents moving forward".

Shares in IOI Properties closed at 2.11 ringgit, down one sen, in Malaysia on Monday.

Hongkong Land shares ended at US$7.76 in Singapore, down five US cents.

The Business Times 

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