Chip Eng Seng establishing SPV for Punggol EC project

Construction Company Chip Eng Seng has announced that its wholly-owned subsidiary, CEL Development, will establish a special purpose vehicle (SPV) to develop an executive condominium (EC) in Punggol.

CEL and its partner, Choicehomes Investments, will facilitate the development of the executive condominium in Punggol after both companies emerged as the top bidder in a public tender for the 99-year leasehold site.

The two companies submitted a joint bid of $223.74 million for the site, which has a maximum allowable gross floor area of 67,500 sq m and a gross permissible plot ratio of three.

With full condominium facilities, the proposed development will comprise nearly 600 residential units.

CEL and Choicehomes, a wholly-owned subsidiary of NTUC Choice Homes Co-operative, will incorporate a special purpose company to jointly develop the project. CEL will hold a 40 percent interest in the SPV while Choicehomes will have the remaining 60 percent stake.

Chip Eng Seng stated that the internal fund and bank borrowings will finance the Proposed Development.