Singapore Land Gets Record Buying Bid Offer From China Buyers

Singapore urban redevelopment authority gets record high bidding offer for a piece of land from a Chinese consortium developers which puts in the highest bid at SGD1 billion (USD718 million) among the all bidding participants.

China's Hong Kong-listed Logan Property and Nanshan Group submitted the highest bid in the Stirling Road land auction that closed May 18, according to government redevelopment authority public release. The winning bid will be decided once the offers have been evaluated. The plot can house about 1,110 units, according to URA estimates.

While the offer is clear, it is not very clear how the funding source of the project will be composed.

According to stock exchange filing, as of the end of 2016 December 31, Hong Kong- listed Logan Group had cash and bank balances(including restricted and pledged deposits) of approximately RMB14.7973 billion, the company's net debt-to-equity ratio is at approximately 71.4% (2015: 58.4%). During the year under review, the average borrowing cost of the company was 6.1% (2015: 6.8%).

In February this year, Logan Property and KWG Property made bidding price for a piece of land in Hong Kong's south most island for HKD16.86 billion(RMB14.93billion) . Hang Seng Bank provides loan facility.