Logan Property turns to Singapore in its bid to diversify

 

Drawn by the city-state’s stable operating environment and low tax system, Logan Property Holdings marked its maiden foray into Singapore with a record $1.003 billion bid for a prime residential site in Stirling Road with Nanshan Group, reported The Straits Times.

Logan Property investor relations director Derek Lee revealed that the Hong Kong-listed developer “has been paying close attention to the property markets in certain overseas core cities including Hong Kong and Singapore in recent years, with an aim to diversifying our land bank portfolio”.

Based on the site’s area of 21,109.5 sq m, the purchase price works out to S$1,050 per sq ft (psf) per plot ratio – which is on the high side according to the view of some analysts but reasonable for Logan Property.

“The company has conducted detailed investment analysis to come up with the bid… (We believe) the project is profitable and meets the company’s internal margin and internal rate of return targets,” said Lee.

Strategically located near a train station, the Stirling Road site can yield around 1,110 private homes. With the new development targeting Singapore buyers, the residential units are expected to go on sale next year, added Lee.

Industry analysts expect the selling price to start from S$1,700 psf.

Boasting over 20 years of experience in housing development in greater China, Logan Property registered an annual contract sales of 28.7 billion yuan (S$5.8 billion) in 2016.

“It’s ranked 32nd among the top 100 Chinese real estate developers in 2016, and owns a land bank of 14.08 million sq m in GFA (gross floor area),” noted Colliers International Singapore research head Tricia Song.

 

This article was edited by Denise Djong.