URA awards tender for Canberra Drive site to UOL unit's JV

The 99-year leasehold site has an area of 296,719 sqft.

The Urban Redevelopment Authority (URA) has awarded the tender of the residential site in Canberra Drive to United Venture Development at a price of $270.2m, a local bourse filing revealed.

United Venture Development is the joint venture company between UOL Venture Investments (a wholly-owned subsidiary of UOL), a wholly-owned subsidiary of United Industrial Corporation (UIC), and property investment firm Kheng Leong Company. It is held on a 50:30:20 basis, respectively.

The Canberra Drive site has a 99-year leasehold and has an area of 296,719 sqft. The parties have paid a tender deposit of approximately 5% of the tender price to URA. A sum
equivalent to 25% of price (included in which is the tender deposit) will be paid within
28 days of the award of the tender.

The transaction will be financed principally from bank borrowings and proportionate shareholders’ loans, and is not expected to have a material impact on the net tangible assets per share and earnings per share of UOL for the financial year ending 31 December. The group stated that the acquisition will enable them to replenish its land bank for residential development in Singapore.