United Engineers gets deal to redevelop former Specialist Centre site

United Engineers said it has been awarded a turnkey contract by OCBC Bank to redevelop the former Specialists’ Centre and Hotel Phoenix site.

The cost of the project is worth around S$550 million.

The project will be carried out in two phases.

Phase 1 will consist of the development and construction of a hotel-cum-retail mall and a pedestrian bridge, and Phase 2 will be the construction of an underpass.

The pedestrian bridge and underpass will link the new development to the former Orchard Emerald site, which is owned by the Great Eastern Life group.

Construction is expected to start in July this year with the Temporary Occupation Permits (TOPs) for both phases expected to be obtained by the second half of 2013.

United Engineers said it will use internal resources and bank borrowings for the project.

The development fees from the project are expected to contribute positively to United Engineers’ earnings in the future.

United Engineers has incorporated two wholly-owned special purpose vehicles (SPV) to undertake the two phases of the project.

When the project is completed, the SPVs will be sold to OCBC Bank and cease to be subsidiaries of United Engineers.

Source : Channel NewsAsia – 7 Jun 2010

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