IOI Properties Group said on Wednesday it was positive about the long-term outlook for Singapore’s genuine real estate market after the developer won the auction of a mixed-use hotel and residential site in Marina Bay.
Boulevard View, a Malaysia-listed wholly-owned subsidiary of IOI Properties, was the sole bidder for the 7,817-square-meter site when the auction of state-owned land closed last week, something unexpected to some analysts given the property’s strategic location in Singapore’s new monetary hub. district. . The Urban Redevelopment Authority announced that it has made the decision to award the 99-year lease site to Boulevard View, which has submitted S$1. 51 billion ($1. 1 billion).
Up to 101,629 square meters of gross land area can be built, of which 51,000 square meters will be used for residential use and 26,000 square meters will be used for hotels, while the rest can be used for both offices and commerce. sales issues F
“The proposed progression of residential complexes and an on-the-floor hotel is expected to meet the pedestrian call for city life opportunities in Singapore’s CBD, such as marina One Residences’ last residential launch in the vicinity of 2014,” IOI said in a statement. statement to Bursa Malaysia. ” In addition, the proposed hotel progression is expected to complement the group’s existing progressions in Singapore and be a valuable addition to its portfolio of investment assets. “
URA had estimated that the allocation could bring in around 905 apartments and 540 hotel rooms. While residential sales in the city-state have recovered strongly this year, the outlook for the hotel industry remains challenging with the recent spike in Covid-19 cases.
“While uncertainty persists for the hospitality sector, the long-term horizon until the final touch of progression goes through short- and medium-term considerations similar to Covid-19,” Calvin Li, director of transaction advisory facilities for Singapore-based hotels and hospitality. JLL Asia Pacific, said via email.
The assignment will last 84 months, giving the company the flexibility for the product line and timing of launch, IOI said in a statement. “Singapore is on a roadmap to move to an endemic life when it comes to Covid-19,” he said. “In line with this, going forward, the company is positive about the long-term prospects for the genuine real estate market in Singapore. “
This will be the time when Marina Bay’s allocation takes place through IOI, which will come with other mixed-use advertising assets on Central Boulevard, which it acquired for about S$2. 6 billion in a state land auction in 2016.
The IOI Central Boulevard Towers, which are expected to be completed through the third quarter of 2023, will have 1. 26 million square feet of work area and 30,000 square feet of retail and food retail area in two towers and a podium, IOI said on its website. Class A workplace construction is available seamlessly by connecting bridges to raffles Place and Shenton Way MRT stations.
“Investor appetite for residential and advertising housing in Singapore remains strong thanks to a slow economic recovery,” WeiLeng Tang, managing director of Colliers in Singapore, said in an email.
In the other aspect of Marina Bay, IOI partnered with billionaire Kwek Leng Beng’s City Developments to expand South Beach’s mixed-use expansion, which the partners completed in 2018. $3,000 consistent on foot, Lee Yeow Seng, IOI’s executive vice president, said in the company’s most recent annual report.
Yeow Seng and his brother Yeow Chor inherited the palm oil empire and assets from their father, Lee Shin Cheng, who died in June 2019. With a net worth of $4. 9 billion, the brothers ranked No. 6 on the list of the 50 richest in Malaysia. It was published in June of this year. His father, who grew up in poverty on a rubber plantation, built palm oil giant IOI Corporation and developer IOI Properties. The two corporations are known in combination as the IOI Group.
Based in Singapore, I am a contributing editor of Forbes Asia, entrepreneurs, wealth and transactions in Southeast Asia. Before joining Forbes, I worked for
Based in Singapore, I am a contributing editor to Forbes Asia, covering entrepreneurs, wealth and transactions throughout Southeast Asia. Before joining Forbes, I worked for various media organizations for more than two decades, adding Bloomberg and Thomson Reuters. I have also dabbled in public relations with positions as an associate director at Singtel and as a lead storyteller at media consultancy FDM Media. To get recommendations on the news, you can succeed with me in jburgos@forbesasia. com.