Lippo continues its push into residential property in Singapore

Indonesia conglomerate Lippo, which controls the country's largest retailer Matahari, has been snapping properties around the region and has emerged as the highest bidder for a plot of freehold land opposite Great World City along Kim Seng Road. This plot of land which is in close proximity to Orchard Road was put on sale by OCBC Bank and Lippo outbid other property developers with an estimated bid of between S$300-330 million which should work out to a breakeven cost of around S$1090-1100 psf. Lippo would be able to build up to two 29 storey residential blocks and no development charge would be necessary. Listed property developer Wheelock is building 'The Cosmopolitan' beside the plot of land and has been selling the units at a cost of between S$1400-1600 psf. This deal however is a win-win for both sides as Lippo has been trying to expand in Singapore with its acquisition of an office tower from MCL last year and OCBC is also expected to net a high profit gain as the plot of land is estimated to hold a book value of around S$50-60 million.