IOI, Hongkong Land to jointly develop Central Boulevard land in S’pore

SINGAPORE — Foreign developers are continuing to muscle in on the Singapore property scene as they take on record-setting high-profile projects.

Malaysia-listed IOI Properties Group and London-listed Hongkong Land on Monday (June 12) announced the signing of a memorandum of agreement to jointly develop and manage a prime plot of land of about 1.1 hectares (118,400 sq ft) strategically located within Marina Bay and the Central Business District of Singapore. The deal is subject to regulatory and other approvals.

The plot of land, adjacent to One Raffles Quay and close to the Marina Bay Financial Centre, was awarded to IOI Properties following a public tender in November last year. IOI Properties’ top bid of S$2.57 billion, submitted through its Wealthy Link unit, set a new record for a white site under the Government Land Sales programme of S$1,689 per square foot per plot ratio. It easily beat the second-best S$2.21 billion bid from Singapore’s Mapletree — by a margin of more than 16 per cent.

The scheme envisaged comprises two office towers of about 1.26 million sq ft of leasable space and a retail podium of about 30,000 sq ft, IOI Properties and Hongkong Land said on Monday. Upon the completion of the proposed deal, IOI Properties will hold 67 per cent of the joint venture company and Hongkong Land will hold the other 33 per cent.

IOI Properties Chief Executive Lee Yeow Seng said: “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.”

Hongkong Land Chief Executive Robert Wong said: “Our new joint venture 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.”

IOI Properties is one of the leading publicly-listed property developers in Malaysia, making its name with sustainable townships and commercial enclaves in Klang Valley and in the state of Johor. On the international front, IOI Properties has projects in Singapore and China.

Hongkong Land, a member of the Jardine Matheson Group, is listed on the London Stock Exchange with secondary listings in Bermuda and Singapore. Hongkong Land owns and manages almost 800,000 sq metres of prime office and luxury retail property in key Asian cities, principally in Hong Kong and Singapore. In Singapore, its subsidiary MCL Land is an established residential developer.