IOI Properties to build S$3.5 bil GDV office development on Central Boulevard site in Singapore

PUCHONG (March 13): IOI Properties Bhd is aiming to start construction of an office development with an estimated gross development value (GDV) of at least S$3.5 billion (RM11 billion) at its newly acquired site in Central Boulevard, Singapore by the end of the year. 

IOI Properties executive chairman Tan Sri Lee Shin Cheng said the development will have a built up of about 1.5 million sq ft. He was speaking to reporters after the handover ceremony of a new multipurpose hall at Bandar Puteri Puchong, Selangor today.

"I think we should be able to get all the approvals by the end of this year, so hopefully we can start construction by the end of the year or the first quarter of next year," he said, adding that the office space will be rented out to large corporations.

Lee noted that the prime location of the land will help the project attract tenants.

"It is a first class location, that is why we paid the price. We know the price looks a bit high, but it is value for money and for long-term investment," he said.

Last November, IOI Properties’ wholly-owned subsidiary, Wealthy Link Pte Ltd, had successfully tendered for a 1.09ha plot in Central Boulevard in the city state for S$2.57 billion from Singapore's Urban Redevelopment Authority. The bid for the prime tract, located at the Marina Bay area, is reportedly the highest for a government land sale.

Meanwhile, Lee expects IOI Properties to hit and even surpass its RM2.3 billion sales target for the financial year ended June 30, 2017.

"It is possible to surpass the target, because the sales from overseas are good, such as in Singapore and Xiamen, China," he said.

The event today saw the multipurpose hall built by IOI Properties handed over to Majlis Perbandaran Subang Jaya (MPSJ).

The 7,000 sq ft hall is one of the largest multipurpose halls in Puchong, said IOI Properties CEO Lee Yeow Seng, adding that the construction cost for the hall was about RM2 million.

"The multipurpose hall is conveniently located in Bandar Puteri 10. The residents of Bandar Puteri Puchong now no longer have to travel to multipurpose halls located in Batu 14 Puchong or Puchong Intan," he said.

He added that the multipurpose hall is one of the company's continued efforts in enhancing community development and building harmonious community relations.

The handover ceremony was witnessed by MPSJ president Datuk Nor Hisham Ahmad Dahlan and deputy president Mohd Zulkarnain Che Ali.

Also present were IOI Properties COO for property development Teh Chin Guan and COO of property investment Cheah Wing Choong.