United Industrial Corp (UIC) has announced that it paid a $160.1 million development charge to URA for the redevelopment of UIC Building.

UIC said the property, which is located at 5 Shenton Way, will be redeveloped on a 40 percent commercial and 60 percent residential scheme, with a total gross floor area of around 926,589 sq ft.

The company said it will finance the redevelopment through internal funding and bank borrowings, and added that the expenses will not have material impact on its earnings per share and net tangible assets for the financial year.

The announcement came after UIC had earlier said that it had acquired in-principle approval from the URA to redevelop the building into residential units.

However, it was undecided how the site would be redeveloped at that time, with Gwee Lian Kheng, CEO of UOL Group, saying that all alternative plans were still being assessed to ensure the best use of the site.

The company’s announcement in February came amid several property developers opting to convert office buildings situated in the CBD into residential use amid escalating luxury home prices, and falling office rents. However, the office rental market is now rebounding.

Additionally, UIC reported early this month that its net profit in the second quarter jumped to $79.1 million from a $251.8 million net loss over the previous year. Revenue also increased 7 percent to $291.8 million from $271.5 million over the same period last year.