Malaysian developer IOI Properties has named Jardine Matheson Group subsidiary Hongkong Land as its partner to jointly develop and manage a prime Central Boulevard site in Singapore.

The 1.1 ha (118,400 sq ft) land parcel is in Singapore's central business district, near Asia Square Tower 1, One Raffles Quay, Marina Bay Suites, as well as Lau Pa Sat.

Once the joint venture is set up, IOI Properties will hold 67 per cent of the joint-venture company and Hongkong Land will hold 33 per cent.

The site, awarded to IOI following a tender in November last year, is to be developed in the Government Land Sales programme as a "white" site, in which the developers have more autonomy in deciding the use of the site.

IOI and Hongkong Land said the project envisaged comprises two office towers of about 1.26 million sq ft of leasable space and a small retail podium of about 30,000 sq ft.

Details of the construction schedule will be announced once the joint venture's plans are more advanced.

In a tender that drew seven bids last year, IOI paid a record price of nearly $2.57 billion or $1,689 psf per plot ratio for the white site.

Hongkong Land, which has stakes in One Raffles Quay and Marina Bay Financial Centre, had teamed up with Cheung Kong Property Holdings to put in a bid for the Central Boulevard site last year.

Mr Robert Wong, chief executive of Hongkong Land, said yesterday: "Our new joint venture allows Hongkong Land to expand its portfolio of prime commercial properties in Marina Bay and demonstrates our long-term confidence in the Singapore property market."

Mr Moray Armstrong, property consultancy CBRE's managing director for advisory and transaction services, said: "The Central Boulevard site represents a great opportunity to build upon the standout success of Marina Bay.

"The progress of the development projects that have been undertaken in the new downtown over the past 15 years has been exceptional when benchmarked against international precedents.

"There is limited office supply scheduled to come on line from 2018 through 2021."

Marissa Lee