Malaysian-listed infrastructure group Gamuda is looking to grow its Singapore land bank following its successful bid for a residential site in Toa Payoh in June, reported The Straits Times.
Gamuda and its partners, Maxdin and Evia Real Estate, won the tender for the 99-year leasehold site for $345.86 million.
Group Managing Director Lin Yun Ling noted that while the Singapore property market has reached a turning point, it is not expected to pick up quickly.
“I remember three, four years ago, we felt it was very ‘toppish’ and not the right time. But we thought in the recent months that it is probably the bottom,” he said.
Private home prices fell four percent in 2014, compared with the 1.1 percent and 2.8 percent increase seen in 2013 and 2012 respectively.
With a market capitalisation of US$3 billion, Gamuda started seeking growth opportunities here around two years ago.
Earlier this year, the group considered submitting a bid for a residential site in Paya Lebar, but decided against it.
As for the Toa Payoh site, Gamuda offered few details about its plans, except to say that the project will focus on a ‘lifestyle’ concept. It is looking at providing buyers incentives like a temporary golf membership to play at the 18-hole Horizon Hills township course in Iskandar Malaysia.
The Toa Payoh development could be soft launched in March at an indicative price of around $1,400 psf on average, said Gamuda.
“It is really just dipping our toes into the water, there will be the next stage after the toes of course, the feet, even if it is not the legs. We will probably approach it that way,” said Lin, who described Gamuda’s move into Singapore as ‘logical growth’.
He added that the foray into Singapore will help the company boost its non-ringgit revenue, which accounts for much of its growth.
Aside from Singapore and Malaysia, Gamuda also has operations in Vietnam, Qatar, Australia, Taiwan and India.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
