UOL wins tender for China site

UOL Group has announced its successful bid for a land parcel in Changfeng Ecological Business Park in Shanghai.

Together with Singapore Land and Kheng Leong Co Pte Ltd, UOL will acquire a land parcel worth 2.06 billion yuan (S$405.1 million), which translates to 24,000 yuan psm of gross floor area. The three companies are all associated with Wee Cho Yaw, the controlling shareholder of UOL.

UOL intends to develop the land parcel into a mixed-use development consisting of residential units and retail space, said the company in a regulatory filing.

UOL, along with its partners, will hold a 40-year tenure for the retail component and 70 years for the residential component.

UOL, through UOL Capital Investments, contributed 40 percent to the tender, while Singapore Land and Kheng Leong contributed 30 percent each.

Singapore Land and Kheng Leong submitted their tender through their subsidiary, Sing- land China Holdings and Peak Star, respectively.

UOL Capital Investments, Sing- land China Holdings and Peak Star are set to incorporate a Singapore joint venture company, which will set up a wholly-owned subsidiary in China to buy the land use rights to the site and commence the construction of the property.

Both the wholly owned subsidiary in China and the joint venture company will become UOL’s associated companies.