SINGAPORE - The freehold Nanak Mansions development in Meyer Road has been bought by an associate of UOL Group in a $201.1 million en bloc deal.
It was the fourth freehold residential site in the Meyer-Amber Roads vicinity to have come on the market this year.
UOL told the Singapore Exchange in a filing on Thursday (Sept 28) that its 50 per cent-owned associate, Secure Venture Development (No. 1), will redevelop the 10,185 sq m site, which has a gross plot ratio of 1.4.
"Meyer Road is a highly coveted address. Given its rare location right next to a park, we see the opportunity to develop this site into a luxury and spacious project which can be dubbed as our 'Nassim Residences of the East'," said UOL deputy group chief executive Liam Wee Sin in a statement.
The sale will be funded mainly by bank borrowings and internal resources.
There is also a private road next to the property of about 910 sq m in Jalan Nuri. This is owned by some subsidiary proprietors of the development and their associates.
These owners have been given a put option, which could result in Secure Venture having to acquire the road land at a yet-to-be-determined price if certain conditions are met, said UOL.
UOL said the acquisition will not have any material effect on the net tangible assets per share or earnings per share of the company for the financial year ending Dec 31.
Shares of the group closed 0.6 per cent or five cents lower at $8.12 on Thursday, before the announcement was made.