Chip Eng Seng setting up SPV for Punggol executive condominium development

Construction firm Chip Eng Seng said Wednesday that its wholly-owned subsidiary, CEL Development will set up a special purpose vehicle (SPV) to facilitate the development of an executive condominium (EC) in Punggol.

This is in view of the fact that CEL and its partner, Choicehomes Investments, have emerged as the top bidder in a tender for the site.

Both sides put in a joint bid of $223.74 million for the 99-year leasehold site.

The site has a gross permissible plot ratio of three and a maximum allowable gross floor area of some 67 and a half thousand square metres.

The proposed development, with full condominium facilities, will comprise approximately 600 residential units.

CEL and its Choicehomes will incorporate a special purpose company to jointly develop the project.

Choicehomes will hold a 60 per cent stake in the SPV while CEL will have a 40 per cent interest in the SPV.

Choicehomes is a wholly-owned subsidiary of NTUC Choice Homes Co-operative.

Chip Eng Seng says the Proposed Development will be financed by internal fund and bank borrowings.

Source : Channel NewsAsia – 16 Jun 2010