SingHaiyi, a leading developer in Singapore, has won their third bid for a residential site in Clementi during an active sales frenzy. The residential site, Park West, is ideally located on Jalan Lempeng and nearby Clementi MRT Station.
This joint venture is SingHaiyi Land and Haiyi Wealth which are both subsidiaries companies of SingHaiyi.
Marketing agent Huttons Asia stated that the success of the transaction is the third attempt for a collective sale by the owners. Huttons Asia said the site could possibly yield 1.33 million square feet of space, once redeveloped.
Park West is a 99-year-old estate sitting on land that is approximately 633,644 square feet with a ratio of 2.1. With an additional $290.6 million differential premium and the lease upgrading premium, it is estimated to reach approximately $850 per square foot per plot ratio.
The head of investment sales for Huttons Asia believes the plot of land could lead to good development opportunities considering its ideal location. The land is located nearby the One-North Business hub and the CBD at Jurong Lake District.
In December, SingHaiyi raised approximately $143 million for investments through a rights issue. The rights issue is a dividend of subscription rights to buy additional securities within the company which is a way to raise more capital without the reduction of ownership percentage of current shares. This could lead to approximately 1.44 billion new shares at 10 cents each and issued as one rights share per every two existing shares.
There are high expectations for this new project thanks to the other projects nearby such as new launch condo, The Clement Canopy. SingHaiyi will shortly apply to the Singapore Land Authority for the grant on the property and hopes to lift some title restrictions. The collective sales have allowed SingHaiyi to develop the the residential land and give the firm the ability to expand their development portfolio in Singapore.
The major shareholder, Haiyi Holdings, has a huge stake in SingHaiyi and is committed to approximately 806 million shares but will also grab any other existing shares that are not pickup up.
http://www.straitstimes.com/business/property/singhaiyi-snags-clementi-site-for-841m
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