UOL Group says wholly-owned subsidiary, UOL Capital Investments, and Peak Star, a subsidiary of Kheng Leong Co. (KLC) and Singland China Holdings (SCH), a subsidiary of Singapore Land, have successfully tendered, on a 40:30:30 basis, for the proposed acquisition of a plot of land 39,540 sqm in area called Parcel 11, Changfeng District, Shanghai, China, for RMB 2.06 billion ($406 million) or RMB24,000 psm of gross floor.

The tenure for the land is 70 years for the residential component (to take up 90% of the GFA) and 40 years for the retail component (10%).

Under SGX’s listing manual, KLC is considered to be an associate of Wee Cho Yaw, Wee Ee Chao and Wee Ee Lim; while Singapore Land is considered an associate of Wee Cho Yaw. Wee Cho Yaw is also the director and controlling shareholder of UOL Group while Wee Ee Chao and Wee Ee Lim are directors and substantial shareholders of the same company.

Situated within the Changfeng Ecological Business Park in Shanghai, the property is about 5km to the north-east of the Hongqiao Transportation Hub and less than 10km from the Bund.

UOL Capital, Peak Star and SCH intend to incorporate a Singapore joint venture company to establish a wholly-owned subsidiary in China to acquire the land use rights to the property and undertake the construction and development of the property. Upon their formation, the JV company and the China unit will become associated companies of the company.