HK’s CK Holdings Looking To Build Huge Commercial Property In Singapore
SINGAPORE – CK Holdings, a real estate player based in Hong Kong, intends to acquire land in the city-state and is exploring the possibility to collaborate with Keppel Land and Hongkong Land to undertake a major commercial development here, reported the Business Times on Thursday afternoon (14 July, SGT).
Its Executive Director Justin Chiu revealed that during a visit to Singapore, he held meetings with both Keppel Land and Hongkong Land, both of which the Hong Kong-listed company had previously teamed up with to build the Marina Bay Financial Centre (MBFC).
Due to the scale of the three companies, they need to construct a “huge development to justify the effort,” amidst the recovery in Singapore’s commercial property market, especially the office and retail segments.
“The office market is becoming very strong, even the retail market” and the development will have an area of about 1 million sq ft, he shared.
Aside from that, Chiu said that Singapore remains “one of the major interests of the CK group”.
“We’ve been here for probably 30 years now, since (its involvement in the construction of) Suntec City, so we want to continue our business here.”
Moreover, the Hong Kong-listed company is also targeting some en bloc sites to replenish its landbank in Singapore.
Chiu disclosed CK Holdings “almost bid for every piece of land in Singapore” over the past few years. However, it failed to acquire any as prices were too expensive.
Still, as the cost of funds higher now, he thinks that Singapore property developers will be less aggressive in their bids, while CK Holdings’ low leverage, financial discipline, and “very deep pocket” will allow it to afford purchases.
Specifically, the HK company is contemplating to develop a commercial property with a total gross floor area (GFA) of at least 400,000 sq ft or between 300 and 400 units, as such scale is needed to cover the higher expenses of a non-local developer. In terms of area, they are looking for a site in central areas, namely in Singapore’s District 9, 10, or 11.
