Singapore, Malaysia seal historic land deal
The historic land deal between Singapore and Malaysia may have a large impact on the real estate sector and even the global financial market, as suggested by the details released in a joint statement by Singapore’s Temasek Holdings and Malaysia’s Khazanah Nasional.
The six parcels of Singaporean land that Malaysia will receive as part of the swap deal have a gross development value (GDV) of S$11 billion. These sites will be commercialised to accommodate planned residences, offices, retail and hotel premises.
With a total permitted gross floor area (GFA) of up to 501,020 sq m, the land includes two parcels in the Ophir-Rochor area and four others in Marina South.
In addition, the two companies have jointly established a new company called M+S Pte Ltd, which is 60 percent owned by Khazanah and 40 percent owned by Temasek, to develop the sites situated in the centre of Singapore’s financial district.
Donald Han, Vice Chairman of Cushman & Wakefield Singapore, stressed that about 60 percent of the 341,000 sq m Marina South land is intended for office space, equivalent to around 90 percent of the total available office space supply this year.
He also said the residential component will be a “huge big-ticket item”, so the developers will need to produce funds to finance the integrated developments’ construction.
The historic land swap deal is part of the Points of Agreement (POA) between Malaysia and Singapore, which was officially sealed yesterday in Putrajaya after having been delayed for the past 20 years.
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