More choices for dining, shopping and entertainment await Sengkang residents and those living in the North-East region.
Singapore Press Holdings and United Engineers will develop a landmark mall under their joint-venture company Earth Holdings, which has been awarded the tender for the site at the junction of Sengkang West Avenue and Fernvale Road by the Housing and Development Board.
The top bid of $328 million was submitted by Earth Holdings Pte. Ltd., a joint venture company between SPH's wholly owned subsidiary - Moon Holdings Pte. Ltd (70%) and UEL's wholly owned subsidiary - United Engineers Developments Pte Ltd (30%).
The location presents an excellent opportunity to create a landmark commercial development catering to the lifestyles of Sengkang residents, as well as those living in the north-eastern region, including Hougang, Punggol and Serangoon Central, said a media statement by SPH and UE.
The potential customer base is expected to grow as Sengkang is fast being built-up and populated with a mix of public and private housing.
With the Fernvale LRT station at its doorstep, the mall will be seamlessly linked to the Sengkang MRT/LRT Station and Sengkang Bus Interchange.
Nearby expressways including Tampines Expressway (TPE) and Central Expressway (CTE) will also make it easily accessible.
Said the statement: "The Site’s easy accessibility by road and rail makes it an ideal location to serve as a hub for shopping, dining and entertainment activities."
SPH also owns Paragon on Orchard Road, 60 per cent of The Clementi Mall, and developed a luxury condominium, Sky@eleven, at Thomson Road.
Mr Alan Chan, Chief Executive Officer of SPH, said: "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."
UEL has vast achievements in property, engineering and construction spanning the building value chain.
Established in 1912, UEL owns and manages several commercial and industrial properties including its flagship building UE Square in Clemenceau Avenue, UE BizHub CENTRAL in Ang Mo Kio and UE BizHub EAST in Changi Business Park. It also manages malls, hotels and serviced apartments, and serviced offices in Singapore and the region.
On SPH partnership with UE, Mr Chan added: "United Engineers is a valued partner with a wealth of experience and expertise in the property sector. We will harness our respective strengths in project development and retail management to build and operate a successful retail mall."
Mr Jackson Yap, Chief Executive Officer of UEL, said: “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.”
The statement added that the joint venture 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.