Recently, the Koh Brothers Group, which is a Singapore-listed developer that is owned by Changi Properties Pte Ltd, partnered with a subsidiary of Far East Consortium, FEC Properties, on a ratio of 20:80 respectively and they formed FEC Skypark Pte (FECS).
FEC Consortium is listed on the Hong Kong Stock Exchange. FECS then proceeded to acquire two freehold residential properties in District 10 en bloc, The Estoril and Hollandia, at S$183.38 million and S$223.94 million respectively.
Consequently, the partners in the venture incurred S$402.32 million as the total cost of buying the two sites, which were developed within the same period. The Estoril is a 34-yr old condominium, and Hollandia is a 33-yr old apartment.
Tender acceptance letters have already been released, and Koh Brothers can tell for certain its share of the cost in the investment is S$81.46 million, while the remaining S$325.86 million is the responsibility of Far East Consortium.
The size of The Estoril site, which holds two residential blocks comprising 6-storey apartments, is 84,600 sq ft, while the size of the Hollandia property on which a 6-storey residential block stands is 53,505 sq ft.
The entire site that FECS is going to work on is, therefore, 138,105 sq ft.
Luckily, the two residential sites lie side by side, and so it is convenient for the developers to accomplish their goal of constructing one elaborate residential property with a gross floor area (GFA) of 242,188 sq ft.
Koh Brothers intends to finance its 20% portion of the cost of acquiring the properties through internal funds as well as from external borrowing.
What the company is excited about mostly is the opportunity to grow its development portfolio within Singapore.