Two 30/70 joint venture companies between Kerry Properties Ltd. and its Allgreen Properties Ltd. affiliate secured the Housing and Development Board's tender for the lease to a mixed-use development site at Pasir Ris Central in Singapore with an offer to pay nearly S$700.0 million.
Including the acquisition costs, Kerry Properties and Allgreen Properties will provide approximately S$766.4 million to Phoenix Commercial Pte. Ltd. and Phoenix Residential Pte. Ltd. for the development of the property. The Hong Kong-listed developer noted in a filing that its S$230.0 million share in the total contribution will be funded using internal cash reserves and/or external bank borrowings.
Phoenix Commercial will oversee the development of the project's commercial component, while Phoenix Residential will manage the construction of the residential portion, Kerry Properties added.
The Singapore property has a site area of 38,003.7 square meters and a 99-year leasehold term. It carries approval for a project with a maximum gross floor area of 95,010 square meters based on a 2.5 gross plot ratio. The property's development, according to Singapore's public housing board, is expected to take 96 months from the acceptance of the tender.
As of March 22, US$1 was equivalent to S$1.35.