UOL arm acquires Bright Hill Drive for S$291.5m

UVD has already deposited S$15.2 m to HDB for the 144,636 sq ft site.

The Board of Directors of UOL Group Limited wishes to announce that the Housing & Development Board has awarded the tender submitted by UVD Pte. Ltd. for the land parcel at Bright Hill Drive at a tender price of S$291,500,000, subject to the conditions of tender as set out in the tender documents.

Details of the Site are as follows:

(1) Location : Bright Hill Drive
(2) Tenure of Land : 99 years
(3) Total Site Area : 13,437.1 square metres (144,636 square feet)
(4) Proposed Development : Condominium
(5) Gross Plot Ratio : 2.8

Under the terms of the tender, UVD has submitted a deposit of S$15.2 million to HDB and the balance of the Tender Price is payable to HDB in two instalments. The Tender Price shall be financed principally from internal resources and bank borrowings.

UVD, which is a 50/50 joint venture company of UOL Venture Investments Pte. Ltd. (a wholly-owned subsidiary of UOL) and Singland Homes Pte. Ltd. (a wholly-owned subsidiary of Singapore Land Limited, will undertake the proposed development of the Site.

Under the Listing Manual of the Singapore Exchange Securities Trading Limited, SLL is considered an associate of Dr Wee Cho Yaw, the Chairman and a controlling shareholder of the Company. Hence, the joint venture is an interested person transaction within the meaning set out in the Listing Manual.

The Audit Committee has reviewed the joint venture and is satisfied that the terms of the joint venture are not prejudicial to the interests of the Company and its minority shareholders. Dr Wee Cho Yaw is the Chairman of SLL, while Mr Gwee Lian Kheng and Mr Wee Ee Lim, directors of the Company, are also directors of SLL.

The acquisition of the Site is not expected to have a material impact on the net tangible assets per share and earnings per share of UOL for the year ending 31 December 2012.