IOI Prop cancels agreement with Hongkong Land to jointly develop Singapore land

KUALA LUMPUR (March 13): IOI Properties Group Bhd (IOI Prop) has terminated its agreement with Hongkong Land International Holdings Ltd (HKLI) to jointly develop and manage a land parcel at Central Boulevard in Singapore.

In a filing with the local stock exchange today, IOI Prop said the termination is due to the “non-fulfillment of certain conditions precedent”.   

“The termination will not impact the development of the Central Boulevard Site as the group has sufficient in-depth expertise, financial capabilities and track record of other completed projects in Singapore and is confident that it will be able to proceed with and complete the proposed development of the Central Boulevard Site,” the filing added.

The termination is also not expected to have any material impact on the group’s earnings per share and net asset per share, IOI Prop said.

IOI Prop’s partnership with HKLI was to have been carried out through a joint venture company called Wealthy Link Pte Ltd.

The group had announced in November 2016 that Wealthy Link had successfully tendered for the Central Boulevard Site for a tender sum of S$2.57 billion.

According to IOI Prop, Wealthy Link had obtained the provisional permission from Singapore’s Urban Redevelopment Authority in February 2018 to commence development works on the land.

“The tender for the piling works has been awarded and construction has already commenced,” the filing added.—

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