News
IOI subsidiary bids RM988mil for land to build high-rise public housing
17-Jan-2012
KUALA LUMPUR: IOI Corp Bhd was the highest bidder for a plot of land to build high-rise public housing in Singapore near the the Clementi Mass Rapid Transit (MRT) station.
According to Singapore’s Housing and Development Board InfoWEB, IOI Corp’s wholly owned subsidiary MultiWealth (Singapore) Pte Ltd’s RM988.39mil (S$408mil) bid was the highest for the condominium project in Jalan Lempeng. The tender closed on Jan 12.
The second highest bid came in at RM874.46mil (S$360.97mil) from three companies, UOL Venture Investments Pte Ltd, S.L. Development Pte Ltd and Russville Pte Ltd.
It is understood that an announcement will be made at a later date but industry sources pointed out that IOI Corp, by virtue of being the highest bidder, will eventually secure the project as the Singapore government gives priority to the highest bidder.
An IOI Corp spokesperson confirmed to StarBiz that the company had been informed it was the highest bidder for the project, but it may take some time for it to receive an official confirmation from the Singaporean government.
“This is good news for us but we will like to take this step-by-step. But we are looking forward to receiving this and we will make an announcement in due course should we receive it from the Singaporean side,” said the spokesperson, who declined to be named because he was not authorised to speak to the press.
A property analyst at a local bank-backed research firm said the location of the Singapore project bode well for IOI Corp’s property division in the longer term as long as properties continued to remain affordable to the masses there.
The IOI Corp spokesperson said the management was aware of this and that it was in a cyclical business, but it also had to prepare for any eventual upturn in the property cycle.
“The management of IOI Corp knows the possible risks involved but after further study, we still put in a bid for this project.
“We noticed that whenever there is a correction in the property market, during the next upcycle prices seem to beat the previous high as long as economies in the region continue to perform well,” the spokesperson said.
The property division contributed 27% to IOI Corp’s operating profit in the year ended June 30, 2011.
The Star | Jan 17, 2012
17-Jan-2012
KUALA LUMPUR: IOI Corp Bhd was the highest bidder for a plot of land to build high-rise public housing in Singapore near the the Clementi Mass Rapid Transit (MRT) station.
According to Singapore’s Housing and Development Board InfoWEB, IOI Corp’s wholly owned subsidiary MultiWealth (Singapore) Pte Ltd’s RM988.39mil (S$408mil) bid was the highest for the condominium project in Jalan Lempeng. The tender closed on Jan 12.
The second highest bid came in at RM874.46mil (S$360.97mil) from three companies, UOL Venture Investments Pte Ltd, S.L. Development Pte Ltd and Russville Pte Ltd.
It is understood that an announcement will be made at a later date but industry sources pointed out that IOI Corp, by virtue of being the highest bidder, will eventually secure the project as the Singapore government gives priority to the highest bidder.
An IOI Corp spokesperson confirmed to StarBiz that the company had been informed it was the highest bidder for the project, but it may take some time for it to receive an official confirmation from the Singaporean government.
“This is good news for us but we will like to take this step-by-step. But we are looking forward to receiving this and we will make an announcement in due course should we receive it from the Singaporean side,” said the spokesperson, who declined to be named because he was not authorised to speak to the press.
A property analyst at a local bank-backed research firm said the location of the Singapore project bode well for IOI Corp’s property division in the longer term as long as properties continued to remain affordable to the masses there.
The IOI Corp spokesperson said the management was aware of this and that it was in a cyclical business, but it also had to prepare for any eventual upturn in the property cycle.
“The management of IOI Corp knows the possible risks involved but after further study, we still put in a bid for this project.
“We noticed that whenever there is a correction in the property market, during the next upcycle prices seem to beat the previous high as long as economies in the region continue to perform well,” the spokesperson said.
The property division contributed 27% to IOI Corp’s operating profit in the year ended June 30, 2011.
The Star | Jan 17, 2012