This article is from the Australian Property Journal archive
LEND Lease and one of its managed funds, the Asian Retail Investment Fund have won the bid to develop a $S748.9 million (approximately $A618 million) project in Singapore.
ARIF was the highest bidder for the Jurong Gateway Road site, a large scale mixed use suburban development in Singapore. The asset will be owned 75% by ARIF and Lend Lease will have a 25% direct interest.
Lend Lease and ARIF will pay $S748.9 million (approximately $A618 million) for the site, which compared to the underbidder at $S728.8 million ($A601 million). The site has capacity for circa 108,000 sqm of development, including a regional suburban shopping centre and commercial tower.
Lend Lease CEO Steve McCann said the group was pleased to be able to deliver a further outstanding asset.
“ARIF was launched in 2006 with 313@somerset its seed investment and this project will see it fully invested,” he added.
The development will be funded by a combination of non-recourse project based debt and equity. Project debt of over $S800 million has already been secured. The bid is subject to final approval and notification by the vendor, the Urban Redevelopment Authority of Singapore.
McCann said the development is in line with the group’s strategy and represents a significant opportunity for Lend Lease to grow its retail platform in Singapore.
“This is an important strategic transaction for our Asian business as we continue to grow our presence in the highly sought after Singapore retail market.
“This opportunity will significantly enhance Lend Lease’s retail and investment management platforms in Singapore leveraging off the highly successful 313@somerset development,” McCann concluded.
Australian Property Journal
