PETALING JAYA (Oct 28): Singapore-based UOL Group Ltd has announced that the tender submitted by its indirect subsidiary United Venture Development (No. 4) Pte Ltd (UVD No. 4) for the en-bloc purchase of a freehold property known as Watten Estate Condominium has been accepted on Oct 27 by the members of the sale committee acting on behalf of the consenting subsidiary proprietors of the units within the property.

UVD No. 4 is held by UOL Group’s wholly-owned subsidiary United Venture Investments Pte Ltd and Singland Residential Development Pte Ltd, a subsidiary of Singapore Land Group Ltd, on an 80:20 basis.

In an announcement to the Singapore Exchange, UOL Group said the acquisition is in line with its business, which would enable the group to replenish its land bank for residential development in Singapore.

Its chief investment and asset officer Jesline Goh noted that the acquisition is a timely replenishment for the group as most of its projects are substantially sold. 

"The prime freehold site is located in the exclusive residential enclave at Watten Rise, which is 1km [from] two prestigious primary schools — Nanyang Primary and Raffles Girls’ Primary schools," said Goh.

"Leveraging our product DNA and experience in developing luxury collection projects like Meyer House, a high-end project that saw healthy take-up with all of its six penthouses sold, we plan to develop another luxury project with about 200 larger format units on elevated ground."

Comprised in Lot 4813L of Mukim 17 and located at 36-44 Shelford Road Singapore, Watten Estate Condominium has a land area of 220,241 sq ft and a gross plot ratio of 1.4 based on a 2019 Master Plan.

According to the announcement, the total purchase consideration, subject to post-completion adjustments, for the property of S$550.8 million was agreed upon on a willing-buyer, willing-seller basis.

The consideration, which shall be financed principally from bank borrowings and internal resources, will follow the payment schedule of 5% of the purchase price within seven days from the award of the tender, including the tender fee of S$1 million to be paid upon the submission of the tender by UVD No. 4; another 5% of the consideration within seven business days from the notice of receipt of sale approval; and the remaining 90% upon legal completion.

The acquisition, which is expected to be completed no later than May 2023, is also conditional upon the written consent of 100% of the subsidiary proprietors, or an order by the Strata Titles Board, the High Court or the Court of Appeal ordering that the property be sold collectively (sale approval), being obtained.

UOL Group said the acquisition will not have any material effect on the net tangible assets per share or earnings per share of the company for the financial year ending Dec 31, 2021.