A joint venture between UOL Group and Singapore Land (SingLand) has submitted the winning bid of S$550.8 million for the en bloc purchase of the freehold Watten Estate Condominium, the companies said in separate filings to SGX Thursday.
The joint venture, called United Venture Development (No. 4) , or UVD4, is 80 percent-held by UOL, with SingLand holding the remainder, the filing said. UOL is the controlling shareholder of SingLand.
An en bloc sale is a collective sale of multiple units of property; in Singapore, when a development is sold en bloc, the buyer usually plans to demolish the existing property and re-develop. The owners are typically paid a sizeable premium in an en bloc sale, but a super majority of at least 80 percent must agree to the sale and later to the purchase price.
The condo is located in Singapore’s Newton/Novena area, called District 11. According to data from PropertyGuru, it was completed in 1983 by developer Lucky Realty (Far East Organization) and has 104 units, ranging in size from 1,001 square feet to 2,594 square feet.
In its marketing for the property, consultancy JLL had said the asking price was S$500 million, and that the property had the potential to be developed up to 286 units with a minimum average size of 100 square meters.
Both SingLand and UOL said the acquisition of the property, located at 36-44 Shelford Road in Singapore, would allow them to replenish their landbank for residential development.
UOL said its part of the consideration for the deal will be financed mainly by bank borrowings and internal resources.
Wee Cho Yaw is the chairman, director and controlling shareholder of both SingLand and UOL, while Wee Ee Lim, who is related to Wee Cho Yaw, is a director of SingLand and is deputy chairman and director of UOL. Group CEO of UOL, Liam Wee Sin, is also a director of both SingLand and UOL.