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UOL Group, CapitaLand JVs win tender for Tampines Ave 11 site for $1.21 bil

Felicia Tan
·3-min read

The transaction will be mainly financed from bank borrowings and proportionate shareholders’ loans.

UOL Group’s indirect joint venture companies (JVCos), Topaz Residential and Topaz Commercial, have won the tender from the Housing & Development Board (HDB) for the integrated residential and commercial site at Tampines Avenue 11.

The tender was awarded at the price of $1.206 billion, or $2,211.49 per sq ft per plot ratio (psf ppr) over the land area of 545,511 sq ft.

The site has a leasehold of 99 years and has a gross plot ratio of 2.5. It is earmarked for mixed-use comprising a residential and commercial development integrated with a bus interchange, a community club and a hawker centre.

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Topaz Residential is a 50:50 JVCo between United Venture Development or UVD (No. 9) Pte. Ltd. and Zircon Land Private Limited, a wholly-owned subsidiary of CRL Realty Pte Ltd. CRL Realty, is, in turn, a wholly-owned subsidiary of CapitaLand Singapore Limited.

UVD(No. 9) is a 60:40 JVCo between UOL Venture Investments Pte. Ltd., a wholly-owned subsidiary of UOL, and Singland Residential Development Pte. Ltd., a wholly-owned subsidiary of Singapore Land Group Lim U06ited.

Topaz Commercial is a 50:50 JVCo between United Venture Development (No. 10) Pte. Ltd. and Zircon Land. UVD(No. 10) is a 60:40 joint venture company between UVI and Singland Commercial Properties Pte. Ltd., another wholly-owned subsidiary of SingLand.

Both JVCos have paid or caused to be paid a tender deposit of 5% of the tender price to HDB.

Around 25% of the tender price, which includes the tender deposit, will be paid within 28 days of the award of the tender. The balance should be paid within 90 days of the award of the tender.

The transaction will be mainly financed from bank borrowings and proportionate shareholders’ loans. It will not have a material impact on the net tangible assets per share and earnings per share of UOL for the FY2023 ending Dec 31.

In connection with the tender, UVI and CRL entered into a memorandum of understanding (MOU) where they set out the risks and rewards of the joint venture, which will be in proportion to the equity of each shareholder in Topaz Residential and Topaz Commercial respectively.

According to UOL, the acquisition of the site will enable the group to replenish its land bank in Singapore and diversify its commercial investment portfolio.

Based on its stake in the JVCos, the group is expected to pay $361.9 million, which is about 6.59% of the group’s market capitalisation of $5.49 billion, based on the volume weighted average share price of its shares transacted on July 10.

Dr Wee Cho Yaw is UOL Group’s chairman and controlling shareholder. He is also the chairman emeritus and controlling shareholder of the group’s subsidiary, SingLand.

His son, Ee Lim is a director of the company and chairman of SingLand.

Liam Wee Sin is a director of both UOL and SingLand.

Shares in UOL closed 7 cents higher or 1.07% up at $6.60 on July 11.

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