GuocoLand’s wholly owned subsidiary, GuocoLand F17 (Singapore), has entered into a joint venture (JV) agreement with Intrepid Investments, Hong Realty and Margaret Rise Development, for the acquisition, development and dealing of the land parcel at Margaret Drive. Margaret Rise Development is a company that was established for the development of the land parcel.
On Aug 7, the group announced that it had submitted a tender with Intrepid and Hong Realty for a land parcel at Margaret Drive, which was accepted at a bid price of $497 million.
Under the agreement, Intrepid holds 35% of the JV while GuocoLand (Singapore) holds 30%. Hong Realty holds the remaining 35%.
That said, both Intrepid and Hong Realty are subsidiaries of Hong Leong Holdings Limited (HLIH), which is a substantial shareholder of GuocoLand. As such, both Intrepid and Hong Realty are expected to be regarded as interested persons of GuocoLand.
According to the group, the current total for all transactions with the interested persons for the current financial year ending June 30, 2025, is $93.6 million. To date, the aggregate value attributable to the aforesaid joint venture stood at $54.3 million for FY2025.
The current total of all interested person transactions for FY2025 is S$113.8 million.
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The joint venture is not expected to have any material effect on the net tangible assets per share and earnings per share of GuocoLand for FY2025.
Shares in GuocoLand closed 8 cents lower, or 5.03% down, at $1.51 on Nov 5.
