Koh Bros and HK group to redevelop 2 District 10 sites

Mon, Apr 30, 2018

Lynette Khoo


KOH Brothers Group Limited has tied up with Hong Kong-listed Far East Consortium to jointly acquire and redevelop two freehold sites in prime District 10 that were acquired en bloc.

The Singapore-listed contractor-cum-developer group said in a regulatory filing on Saturday that its wholly owned unit Changi Properties Pte Ltd has entered into a 20-80 joint venture with FEC Properties, a wholly owned unit of Far East Consortium.

The redevelopment of The Estoril site and Hollandia, which were acquired through collective sales, will be undertaken through the special purpose entity FEC Skypark Pte Ltd (FECS).

FEC Properties has received the tender acceptance letters for the acquisitions of the Hollandia site and The Estoril site at the tendered sale price of S$183.38 million and S$223.94 million respectively. It has nominated FECS to acquire these land parcels in its place.

Koh Brothers' 20 per cent stake in the total land acquisition cost of Hollandia and The Estoril costs about S$81.46 million, which it intends to fund via internal resources and external borrowings. It said that it believes that the subscription of a 20 per cent stake in FECS will allow the group to expand its development portfolio in Singapore.

The Estoril site currently comprises two blocks of six-storey residential apartments with a total freehold site area of 7,859.6 sqm, while the Hollandia site currently comprises a six-storey block with a total freehold site area of 4,970.8 sqm. Both are prominently located along Holland Road. FECS intends to redevelop the two sites, located next to each other, into a single residential project with a combined gross floor area of about 22,500 sqm.