SINGAPORE (May 17): UOL Group has submitted the only and winning bid of $1.035 billion to acquire the residential site at Silat Avenue.

The leasehold site at Silat Avenue has a tenure of 99 years and a total site area of 245,972 sf. The area is allowed to be developed into a residential site with commercial use and with conservation of five existing buildings.

Wholly-owned subsidiary UOL Venture Investments (UVI), UIC Homes and Kheng Leong Company (KLC) were jointly awarded the tender by Urban Redevelopment Authority (URA) which closed on April 26. 

UIC homes is a wholly-owned subsidiary of United Industrial Corporation (UIC).

UVI owns 50% of this joint venture (JV) company, while UIC holds 30% and KLC 20%.

Under to the terms of the JV, UVI, UIC and KLC will incorporate a JV company with stakes of 50:30:20 respectively. Upon subscription and issuance of the shares, the JV will accounted as a subsidiary of UOL.

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UOL’s portion of the tender price shall be financed principally from bank borrowings and proportionate shareholders’ loans.

As at 12.30pm, shares in UOL are trading 6 cents higher at $8.41, while shares of UIC are trading at $3.24.