Quek’s company that won the Pacific Mansion tender is GuocoLand, a company listed on the Singapore Stock Exchange.
The company announced news of their successful bid on Monday, Mar 18, and disclosed they had entered the bid in partnership with two other companies, Intrepid Investments and Hong Realty.
Hong Leong Investment Holdings, a company under the control of Kwek, Quek’s cousin, has majority shareholding in the latter two.
The minority shareholders in the holding company are also related to the family in one way or another.
For the three business entities involved in acquiring Pacific Mansion, it is a 40:40:20 ratio for GuocoLand, Intrepid and Hong Realty respectively. Quek gets the entire 40% share through GuocoLand, while Kwek gets his share through his majority shareholding in Intrepid Investment and Hong Realty.
The uniqueness of this liaison has not escaped the observers’ notice, as bigwigs are known to compete stiffly against one another, yet these two have collaborated to clinch this deal of a historic magnitude.
Although Kwek is one among other shareholders at Hong Leong Investment Holdings, he is the one who chairs meetings of all the subsidiaries, including City Development Ltd, a company listed on the Singapore Stock Exchange.
On the other hand, Quek controls Hong Leong Co. Malaysia Bhd and all its subsidiaries, which incidentally, includes Guocoland.
Kwek Leng Beng’s brother, Kwek Leng Hai, is also a director and shareholder in GuocoLand. He is a shareholder in Hong Leong Holdings too as well as in Hong Realty.
As per now, it is not clear which entity will take the lead in the actual development of the property.
One market observer has noted the importance of the two big developers working together rather than competing against each other, noting there is the added advantage of sharing the risks involved in a heavy investment.
GuocoLand is not new to Singapore’s Central Region. Last year, July, the company launched its completed development project within River Valley known as Martin Modern, and they were able to sell more than half of their units which were 450 in total at an average rate of about S$2,300 per sq ft.
The Market Might Calm Down In the Second Half Of 2018
Karamjit Singh, senior consultant at JLL, who noted the fast pace at which properties have been selling since the year began, says he sees the likelihood of the market slowing down in the second half of 2018. His concern is that activity has been very high, yet pricing has remained consistent.