Pidemco Land To Acquire Stake In Prime Hongkong Site Singapore, 23 February, 2000
Singapore, February 23 - Pidemco Land is pleased to announce that it has signed an agreement to acquire a 65 per cent stake in a prime Central site in Hongkong at 1, Connaught Road from Hongkong-listed Lai Sun Development Company Limited (LSDC). The site, presently occupied by Furama Hotel, has potential to be redeveloped into a prime office building.
Pidemco Land will pay HK$1.88 billion (S$415 million) to buy the 65 per cent stake in the property. The remaining 35 per cent will be retained by the vendor LSDC.
The intention of this purchase is to redevelop the site into a Grade A office building. Prior to the redevelopment, the vendor will continue to operate the hotel and lease it from Pidemco Land at a rental of HK$145 million per annum providing a net yield of five percent to the purchaser.
"This acquisition is part of our ongoing strategy to build up a significant presence in gateway cities. This is a superb site with unrivalled views of the harbour and the Peak. It is one of the very few 999-year leasehold sites in Hongkong's prime Central,'' said Pidemco Land President Mr Liew Mun Leong.
"Our intention is to develop a state-of-the-art office building which is reflective of Hongkong as a financial hub in North Asia," he added.
The property has a land area of 24,427 square feet and an approved buildable gross floor area of 366,405 sq ft. Subject to official approval, there is potential for the GFA to increase up to 410,000 sq ft. Based on the potential GFA of 410,000 sq ft, the per sq ft price paid for the transaction by Pidemco Land works out to about HK$7,073 psf.
Pidemco Land is a leading property developer, investor and manager of residential and commercial properties in Singapore. It also has properties in major gateway cities in Asia and in the UK. The Group's diversified portfolio includes serviced apartments and shopping centres which are owned and managed by its Singapore-listed subsidiary Somerset Holdings.
Pidemco Land is a member of Singapore Technologies Group, a technology-based multinational company headquartered in Singapore.
Issued by : Pidemco Land Limited
Date : February 23, 2000