United Overseas Bank is selling properties worth some $387 million to related parties as part of its capital reallocation moves. These properties are carried on the bank's books at $149.5 million.
First, UOB will sell its 20% interest in Novena Square to joint venture partner Singapore Land Group for $299 million. The bank will also sell and lease back a bank branch at this development for $19.5 million. These transactions value Novena Square at $1.495 billion.
Upon completion of these deals, SingLand will own 40% of Novena Square, with parent company UOL Group holding the remaining 60%.
According to SingLand in its separate announcement, these deals will help increase its share of recurring income from a stabilised asset, which can then help provide "near-term income supplement" to its investment properties amid ongoing redevelopment of other properties such as The Clifford.
Last but not least, UOB will sell its various interests in 230 Orchard Road for $68.5 million to UOL Group.
This site, formerly known as Faber House, is now being rebuilt into a new mixed development that will include a hospitality component that will be called the NoMad Hotel.
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"The acquisition allows the group to consolidate its interest in and wholly own the" property, says UOL in its announcement.
UOB CEO Wee Ee Cheong's family controls all these entities.
