Koon Holdings Ltd, one of Singapore’s leading construction specialists, has announced that its wholly-owned subsidiary, GPS Alliance Development & Investment Ltd, has entered into a joint venture (JV) to develop an Executive Condominium (EC) project at Pasir Ris Drive 3 / Pasir Ris Link.
Under the terms of the agreement, GPS Alliance Development will own a 15 percent stake, while Ho Lee Group Ltd, Maxdin Ltd and EVIA Real Estate Ltd will hold a 21 percent, 30 percent and 34 percent share respectively.
Ho Lee Group Ltd and Maxdin Ltd have been awarded the tender for the EC site at Pasir Ris Drive 3 / Pasir Ris Link at the tender price of S$122.2 million.
Tan Thiam Hee, Managing Director and Chief Executive Officer of Koon, said the recent move by the government to raise the income ceiling for those eligible for EC housing “has further boosted the demand for ECs. Other than this site, there is no other supply of new EC projects in the Pasir Ris area in the immediate future.”
“Demand is likely to come from the potential upgraders currently living in Pasir Ris and Tampines new towns and those working in the eastern part of Singapore. In view of these trends, we have decided to participate in this landmark residential property development. In addition, our real estate agency unit, GPS Alliance, will be responsible for the marketing strategy and sales of this residential development.”
The group will finance its equity shareholding stake in the JV Company through funds. It is not expected to have an impact on the group’s performance for the current financial year.
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