SOLD for S$675.3 million, UOL & UIC now fully owned the famous Hotel property
The commercial and hotel property markets are just doing great as pronounced by experts in the last few months.
The latest notable transaction at S$675.3 million involves the UOL Group Limited acquiring the Marina Mandarin Hotel along with balance parts of Marina Square Complex through its subsidiaries.
The 1985 vintage Marina Square Retail and Commercial Complex was the first major project along the Marina Bay land reclamation area, comprising the Marina Square Shopping Mall and Marina Square Hotels namely – Marina Mandarin, Pan Pacific and Mandarin Oriental.
The 700,000 square feet complex boasts a series of asset enhancement initiatives along the decades and occupancy of high-profile tenants that keeps it ever fresh with good footfall.
By this strategic acquisition, the entire Marina Square Mall along with hotels Marina Mandarin and Pan Pacific would be owned by UOL Group Limited, while the Mandarin Oriental is held at 50:50 with Jardine Matheson’s Mandarin Oriental Hotel Group.
The consolidation of these assets is seen as an opportunity to tap the great potential in the Marina Bay region, as envisioned by Lim Hock San, President and Chief Executive – UIC (United Industrial Corp), the subsidiary through which the transactions were carried out.
The Marina Centre Holdings (MCH), which is the subsidiary of UIC, has investments in the Complex and Hotels along with other stakeholders like Finnegan Investments Limited (10.27%), Mackmoor (10%) and OUE Limited (4%).
By acquisition of the stakes from these third parties, UIC has completed the transaction through its indirect subsidiary, S.L. Development Pte. Limited.
This transaction termed the MCH acquisition also involves acquiring 25% shares of Aquamarina Hotel (AMH) from a subsidiary of OUE.
In all, UIC would have 77.34% stakes in MCH and 75% stakes in AMH while the balance stakes would be held by UOL Group Limited.
The OUE has pocketed S$390 million through this divestment, though this is not expected to have significant impact on its net tangible asset value.
However, an additional S$0.15 increase in its share value is anticipated for the year 2019. By the year end, it would wind off its management role from Marina Mandarin operations, as per agreement.
This consolidation of Marina Square assets is yet another milestone for nonagenarian and top-wealthiest Singaporean, Wee Cho Yaw, who chairs the UOL Group.
The expenditure is likely to be met through a mix of internal resources and bank loans.
The group’s Chief Executive, Liam Wee Sin is optimistic to enhance the hotel asset to the extent of rebranding it, in order to take it to the next level.
The Strategic Development Incentive (SDI) Scheme announced by the URA under Master Plan 2019 to rejuvenate the Orchard Road, Central Business District (CBD) and Marina Centre comes handy to support his dreams.
The proposal-specific SDI Scheme, aimed to transform these areas applies to Commercial or Mixed-Use developments (with predominant commercial use) with at least 20 years of age from the date of TOP.
Thanks to URA, the Scheme becomes available right on time to match the upbeat mood in Commercial and Hotel property industries.