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IOI Properties ends partnership with Hongkong Land on Singapore site development

IOI Properties Group Bhd. ended a memorandum of agreement with Hongkong Land Holdings Ltd. involving the joint development of a 1.1-hectare mixed-use scheme in Singapore's prime business district, The (Singapore) Business Times reported, citing IOI.

Hongkong Land will cease to hold a proposed 33% interest in the development. IOI, which was awarded the 99-year leasehold tender for the Central Boulevard site in November 2016 for S$2.57 billion, cited Hongkong Land's failure to fulfill certain preconditions as the reason for its removal, in a regulatory filing with Bursa Malaysia.

The Malaysian developer is confident that it will complete the Central Boulevard site project and noted that the development will not be impacted by the termination.

The conditions that had to be met by March 12 included obtaining approval from the Urban Redevelopment Authority, or URA, and securing remission approvals for additional conveyance duties and buyer's stamp duty, among others. The company did not state which preconditions Hongkong Land had failed to meet, according to the publication.

Construction on the site — slated to offer two office towers with about 1.26 million square feet of leasable space, as well as a roughly 30,000-square-foot retail podium — commenced following provisional approval from the URA in February.

As of March 14, US$1 was equivalent to S$1.31.