IOI in a joint development

\KUALA LUMPUR (June 13): IOI Properties Group Bhd has roped in Hongkong Land to jointly develop and manage 1.1ha of prime land located within Marina Bay and the central business district of Singapore.

In a statement yesterday, IOI Properties said it has signed a memorandum of agreement with Hongkong Land for the proposed project, subject to regulatory and other approvals.

Upon completion of the proposed joint venture (JV), IOI Properties will hold 67% of the JV company and Hongkong Land will hold 33%.

“We look forward to working with our partner Hongkong Land on this exciting new development, which will bring office space of the highest quality to Singapore’s premier central business district,” said Lee Yeow Seng, chief executive officer (CEO) of IOI Properties, in the statement.

“Our new JV allows Hongkong Land to expand its portfolio of prime commercial properties in Marina Bay and demonstrates our long-term confidence in the Singapore property market. We are delighted to partner with IOI Properties to deliver the exceptional levels of design, construction and management that our tenants expect,” said Robert Wong, CEO of Hongkong Land.

In November last year, IOI Properties had clinched the prime site for S$2.57 billion.

The 99-year leasehold land has a maximum permissable gross floor area of 141,294 sq m, or about S$18,180 (RM56,576) per sq m, it had told Bursa Malaysia.

It was reported that the price bid by IOI Properties’ subsidiary Wealthy Link Pte Ltd was a record for a government land sale.

The site is adjacent to One Raffles Quay, and close to the Marina Bay Financial Centre. The scheme envisaged comprises two office towers of 1.26 million sq ft of leasable space and a small retail podium of 30,000 sq ft.

IOI Properties also has other project developments in Singapore and China.

The group has a total development land bank of 4,047ha. Under its investment property portfolio, it manages a total of 6.7 million sq ft of lettable area, comprising retail, purpose-built office and others. These properties are mostly located in high-growth areas, which are well-connected, accessible and are centred within a high population concentration.

Hongkong Land owns and manages almost 800,000 sq m of prime office and luxury retail properties in key Asian cities, principally in Hong Kong and Singapore.

This article first appeared in The Edge Financial Daily, on June 13, 2017.

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