GuocoLand Ltd.'s 70/30 joint venture with parent Guoco Group Ltd. successfully bid S$1.62 billion for the 99-year term leasehold of a commercial site on Singapore's Beach Road.
The company said joint venture companies GLL Prosper Pte. Ltd. and GLL Thrive Pte. Ltd. were awarded by the city-state's Urban Redevelopment Authority with the tender for the site, which has a gross plot ratio of 4.2 and land area of 21,026.9 square meters.
GuocoLand intends to transform the property into a mixed-use development via the joint venture companies, for which it will invest approximately S$1.17 billion in equity participation and loans. The company added that it will finance its contribution through a combination of internal resources and bank loans.
The company outbid four other competitors for the roughly two-hectare Beach Road site, which was taken to the market in July with a nearly S$1.14 billion minimum asking price. Other bidders include affiliates and subsidiaries of companies including CK Asset Holdings Ltd., OUE Ltd. and Far East Organisation Pte. Ltd.
As of Oct. 3, US$1 was equivalent to S$1.36.