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Koh Brothers ties up with Far East Consortium to redevelop two freehold sites

KOH Brothers Group Limited has tied up with Hong Kong-listed Far East Consortium to jointly acquire and redevelop two freehold sites in prime District 10 that were acquired en bloc.

The Singapore-listed contractor-cum-developer group said in a regulatory filing on Saturday that its wholly owned unit Changi Properties Pte Ltd has entered into a 20-80 joint venture with FEC Properties, a wholly owned unit of Far East Consortium.

The redevelopment of The Estoril site and Hollandia, which were acquired through collective sales, will be undertaken through the special purpose entity FEC Skypark Pte Ltd (FECS).

FEC Properties has received the tender acceptance letters for the acquisitions of the Hollandia site and The Estoril site at the tendered sale price of S$183.38 million and S$223.94 million respectively. It has nominated FECS to acquire these land parcels in its place.

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Koh Brothers' 20 per cent stake in the total land acquisition cost of Hollandia and The Estoril is about S$81.46 million, which it intends to fund via internal resources and external borrowings.

It said that it believes that the subscription of a 20 per cent stake in FECS will allow the group to expand its development portfolio in Singapore.

The Estoril site currently comprises two blocks of six-storey residential apartments with a total freehold site area of 7,859.6 sq m, while the Hollandia site currently comprises a six-storey block with a total freehold site area of 4,970.8 sq m.

Both are prominently located along Holland Road. FECS intends to redevelop the two sites, located next to each other, into a single residential project with a combined gross floor area of about 22,500 sq m.

FEC Properties is part of a consortium with SC Global Developments and New World Development that last week tabled a top bid of close to S$410 million for the prime residential site within the Orchard Road district along Cuscaden Road under a government land sale tender.

This bid, which translated to S$$2,377 per square foot per plot ratio (psf ppr), trumped eight other bidders for the site.