PETALING JAYA (Feb 24): IOI Properties Group Bhd’s proposed joint venture in the Marina Bay financial district has faced challenges in obtaining longer-term financing and fulfilling specific conditions precedent, reported The Edgeweekly, citing sources.
The project, worth at least S$2.84 billion (RM8.43 billion), will be jointly undertaken by IOI Properties’ unit Wealthy Link Pte Ltd with London Stock Exchange-listed Hongkong Land Holdings Ltd (HKL) to develop what HKL described as two office towers with 1.26 million sq ft of net office floor area with 30,000 sq ft of retail podium space, with direct links to other properties it manages in the area, namely One Raffles Quay and Marina Bay Financial Centre.
Back in November 2016, IOI Properties had successfully tendered for the land from Singapore’s Urban Redevelopment Authority (URA) for S$2.84 billion.
URA requires that successful land tenders complete their proposed developments within 84 months, or seven years.
In the event that any of the tender developments are breached – including missing the development deadline – URA may repossess the land, as if the tender had never taken place, causing IOI Properties to forfeit any deposits paid, according to a Bursa announcement by IOI Properties in November 2016.