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KUALA LUMPUR (Sept 22): IOI Properties Group Bhd’s wholly-owned subsidiary Boulevard View Pte Ltd submitted a S$1.508 billion (approximately RM4.68 billion) bid to buy an estimated 0.78ha (7,817.6 square metres) leasehold land known as the White site at Singapore’s Marina View enclave under the country's Urban Redevelopment Authority's (URA) invitation to tender which saw Boulevard View becoming the sole bidder.
According to IOI Properties’ Bursa Malaysia filing and the URA’s statement, IOI Properties had yesterday (Sept 21) submitted the bid to the URA, which is acting as agent on behalf of the Government of Singapore.
In the Bursa filing, IOI Properties said, "The company will make the relevant announcements once the decision on the tender has been obtained from the URA.”
Meanwhile, the URA said in its statement that it had yesterday closed the tender for the White site at Marina View.
The site at Marina View was launched for public tender on June 28, 2021, according to the URA.
"It was originally on the Reserve List of the Government Land Sales Programme. URA had, on June 10, 2021, accepted a successful application for the site to be put up for sale. The site was offered for sale on a 99-year lease,” the URA said.
The URA said in an attached document within the statement that the S$1.508 billion tendered sale price offered by Boulevard View to acquire the White site translates into a price per square metre of S$14,838.29 based on the site’s maximum permissible gross floor area of 101,629 square metres.
In the statement, the URA said the announcement on the closing of the tender is not an announcement of tender award.
"A decision on the award of the tender will be made after the bid has been evaluated.
"This will be publicised at a later date,” the URA said.
Today, AmInvestment Bank Bhd analyst Lee Ching Poh wrote in a note that AmInvestment understands that Boulevard View is likely to win the tender award as it is the only tenderer.
Lee said the Marina View landbank is intended for mixed development, largely comprising residential units and a 540-room hotel with the balance for commercial units.
The analyst said given the high development cost and significant impact on IOI Properties' balance sheet, AmInvestment expects IOI Properties to form a joint venture with other partners to diversify the potential risks.
"We are positive on this value-accretive deal which could garner strong demand from its prime location in the central region of Singapore with accessibility of MRT stations as the economy recovers over the mid to longer term.
"While pending the award announcement and details from the company, we maintain our (IOI Properties) forecast and (share) fair value (at RM1.80 with a 'buy' call) for now,” Lee said.
At Bursa’s 12:30pm break today, IOI Properties' share price settled unchanged at RM1.19, valuing the company at about RM6.56 billion.
IOI Properties has 5.51 billion issued shares.
