KUALA LUMPUR: IOI Corp Bhd said yesterday it had won a tender for a parcel of land in Jalan Lempeng, Singapore, for S$408 million (RM995 million).
The Housing and Development Board of Singapore (HDB) on Monday accepted the bid from Multi Wealth (Singapore) Pte Ltd, in which IOI Corp holds a 99.8%-owned subsidiary, to build condominiums on the parcel of land.
The land is located in Jalan Lempeng, Off Clementi Avenue 6, adjacent to several private condominiums such as Park West, Regent Park and Faber Hill. This places it within walking distance of the Clementi Mass Rapid Transit station and the Clementi bus interchange.
The 99-year leasehold parcel of land measures about 24,417 sq m (2.4ha) with a permissible gross floor area of 68,369.3 sq m (736,000 sq ft), which translates into a plot ratio of 2.8.
“The gross development value and gross development costs of the proposed development have yet to be determined as the project development plans are still at a preliminary stage,” said IOI Corp.
The deal has been met with scepticism by analysts who expect foreign demand for Singapore properties to weaken after it introduced an additional 10% stamp duty amounting to 10% of the property value in December 2011.
Adding to the scepticism is the delay in IOI Corp’s earlier project, South Beach, in which it holds a 49.9% stake. The project hit a snag after the onset of the global financial crisis in 2008. Until now, there has been little progress on the project.
Apart from IOI Corp, other Malaysian property players which have expanded to Singapore include S P Setia Bhd, Selangor Dredging Bhd, YTL Land and Development Bhd, and Khazanah Nasional Bhd.
IOI’s share price slid one sen to RM5.33 yesterday with 6.8 million shares changing hands.
This article appeared in The Edge Financial Daily, January 18, 2012.
The Housing and Development Board of Singapore (HDB) on Monday accepted the bid from Multi Wealth (Singapore) Pte Ltd, in which IOI Corp holds a 99.8%-owned subsidiary, to build condominiums on the parcel of land.
The land is located in Jalan Lempeng, Off Clementi Avenue 6, adjacent to several private condominiums such as Park West, Regent Park and Faber Hill. This places it within walking distance of the Clementi Mass Rapid Transit station and the Clementi bus interchange.
The 99-year leasehold parcel of land measures about 24,417 sq m (2.4ha) with a permissible gross floor area of 68,369.3 sq m (736,000 sq ft), which translates into a plot ratio of 2.8.
“The gross development value and gross development costs of the proposed development have yet to be determined as the project development plans are still at a preliminary stage,” said IOI Corp.
The deal has been met with scepticism by analysts who expect foreign demand for Singapore properties to weaken after it introduced an additional 10% stamp duty amounting to 10% of the property value in December 2011.
Adding to the scepticism is the delay in IOI Corp’s earlier project, South Beach, in which it holds a 49.9% stake. The project hit a snag after the onset of the global financial crisis in 2008. Until now, there has been little progress on the project.
Apart from IOI Corp, other Malaysian property players which have expanded to Singapore include S P Setia Bhd, Selangor Dredging Bhd, YTL Land and Development Bhd, and Khazanah Nasional Bhd.
IOI’s share price slid one sen to RM5.33 yesterday with 6.8 million shares changing hands.
This article appeared in The Edge Financial Daily, January 18, 2012.
