Saturday, March 30, 2013

Lian Beng unit acquires Changi Road commercial plot

The Business Times  |  Posted: 29 March 2013

A wholly owned subsidiary of Lian Beng Group called Wealth Development has snapped up a freehold commercial plot at Changi Road, which is home to the AIA building, for $68 million.

The construction firm said that it intends to redevelop the property with two partners, which are both wholly owned subsidiaries of KSH Holdings Ltd and Tee International called Kim Seng Heng Realty and Development 16, respectively.

Lian Beng "intends to enter into a formal agreement" with the two firms, which will each take up 30 per cent stakes in Wealth Development, it said in a statement yesterday.

Lian Beng will hold the remaining 40 per cent.

The three companies did not provide details on their redevelopment plans, only saying that Wealth "intends to redevelop the property, subject to obtaining all the necessary approvals from the relevant authorities".

A source close to the project, however, said that it will likely be a mixed-use development that will have both office and retail space.

The 17,974 sq ft plot has a permissible gross plot ratio of 3. No development charge is payable for the site.

The deal was brokered by Savills, who said in January when it put up the site for sale by tender that it can be taken up by end-users who need a corporate office building, or be redeveloped for strata sales for retail or office use.

Savills said that a hotel could be considered for the site, subject to approval by the relevant authorities, due to its commercial zoning.

According to Steven Ming, deputy managing director and head of investment sales at Savills, the property attracted strong interest.

"We fielded many enquiries from prospects that comprised predominantly end-users and developers," he said.

The plot of land housed part of AIA Singapore's agency operations till late last year, when the company vacated the premises and moved its agency operations to its other properties here.

Lian Beng's shares closed 1.1 per cent higher at 44.5 cents yesterday. Shares of KSH Holdings and Tee International closed flat at 47 cents and 37 cents, respectively.

Martin Koh | 86666 944 | R020968Z
Sherry Tang | 9844 4400 | R020241C

Senior Sales Director
DTZ Property Network Pte Ltd (L3007960A)

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