SPH awarded Sengkang commercial site

$328 million joint tender with United Engineers tops the bidding for the 8,790.3-sq.m. site.

The commercial site has a gross floor area of 26,370.9 and will be leased for 99 years to Earth Holdings Pte Ltd, the joint venture company between SPH and United Engineers.

This adds to the growing retail mall properties under SPH. It owns Paragon on Orchard road and has a 60% stake in The Clementi Mall.

The publisher has signified its intentions to further spread its revenue base from retail properties to counter the declining prospects in its core newspaper business.

SPH said the Sengkang commercial site will cater to north-eastern mall goers in Hougang, Punggol and Serangoon Central.

Notable transportation near the area includes the Sengkang MRT/LRT station, Sengkang Bus Interchange, and Tampines and Central Expressways.

"We aim to build on the track record of our property portfolio and establish our presence in the retail mall sector. This complements our wide spectrum of media and other businesses, and helps to boost the Group's total returns. We will continue to explore ways to enhance our property portfolio as and when opportunities arise," said Mr. Alan Chan, Chief Executive Officer of SPH in a release.

“We believe SPH’s extensive retail management experience and our property development capabilities form the foundation of this partnership. The north-eastern Singapore sees rapid growth in population, especially that of young couples and family upgraders. We are confident that our mall will serve their needs in the near future," said Mr Jackson Yap, Chief Executive Officer of UEL.

The transaction is not expected to have any material impact on the net tangible assets or earnings per share of SPH for the financial year ending 31 August 2012, said SPH.