IOI Properties Group – controlled by billionaire brothers Lee Yeow Chor and Lee Yeow Seng – made the sole bid for mixed-use hotel and residential property while the Malaysian property developer doubled its investment in Marina Bay, Singapore’s downtown financial district.
Boulevard View – a wholly owned subsidiary of Malaysia-listed IOI Properties – offered S $ 1.51 billion (US $ 1.1 billion) for the 99-year-old building plot, the Urban Redevelopment Authority said late Tuesday. The site, which was on the reserve list of the state land sale program, was put up for auction in June after an unnamed bidder – allegedly IOI – offered the minimum bid for the property.
“This is not a tender notice,” said the URA in a statement. âThe award will be decided after the offer has been evaluated. This will be announced at a later date. “
The 7,817 square meter area can be built up to 101,629 square meters of gross floor area, of which 51,000 square meters are used for residential use and 26,000 square meters for a hotel, while the rest can be used for office space as well as retail and F&B outlets. The location is strategically located behind the Asia Square office tower and close to the upcoming Shenton Way MRT station.
URA had estimated that the project could create around 905 residential units and 540 hotel rooms. While residential sales in the city-state have rebounded sharply this year, the outlook for the hotel industry remains difficult given the recent surge in Covid-19 cases.
Should URA decide to give the property to IOI, this will be the second Marina Bay project carried out by the company developing another mixed-use commercial property on Central Boulevard. In 2016, the company acquired the site for approximately $ 2.6 billion at a state land auction.
The IOI Central Boulevard Towers is expected to be completed in the third quarter of 2023 and will have 1.26 million square feet of office space and 30,000 square feet of retail and F&B outlets in two towers and a podium block, IOI announced on its website. The Class A office building is easily accessible via bridges connecting the Raffles Place and Shenton Way MRT stations.
In Marina Bay, IOI has teamed up with billionaire Kwek Leng Beng’s City Developments to develop the mixed-use South Beach Development, which the partners completed in 2018. More than 70% of the residential component of the project is being sold at prices above S $ 3,000 per square foot, Lee Yeow Seng, IOI’s executive vice chairman, said in the company’s latest annual report.
Yeow Seng and his brother Yeow Chor inherited the palm oil and real estate empire of their father Lee Shin Cheng, who died in June 2019. With a net worth of $ 4.9 billion, the brothers ranked number 6 on the list of the 50 richest in Malaysia, published in June this year. Her father – who grew up in poor circumstances on a rubber plantation – built the palm oil giant IOI Corporation and the developer IOI Properties. The two companies are commonly referred to as the IOI group.