Agence France-Presse (AFP)
By Elena Torrijos – September 22nd, 2010
The prime pieces of land Singapore will give a Malaysian-led consortium to resolve a long-standing dispute is worth up to seven billion Singapore dollars (5.25 billion US), a leading property analyst said Tuesday.
The parcels, located around Singapore’s glamorous Marina Bay, were ceded in a land swap agreed Monday under which Malaysia will give up property it has owned inside Singapore as part of a railway dating back to British colonial rule over both countries.
Singapore offered 5.29 hectares (13.1 acres) of land in two plots, according to a fact sheet provided by the Ministry of National Development (MND).
A company known as M-S Pte Ltd will take ownership of the land for development, with 60 percent of the equity held by Malaysian investment agency Khazanah Nasional Berhad and 40 percent by Singapore’s Temasek Holdings.
The plots, loosely referred to as the “Marina South” and “Ophir-Rochor” parcels, were designated as “white” land use areas by the MND which means they could be used for high-value commercial, hotel or residential projects.
The Ophir-Rochor land parcels “can range anywhere from 1.38 billion to 1.9 billion” in the current property market, said Nicholas Mak, executive director of research and consultancy at SLP International Property Consultants.
“The one at Marina (South) can range from 3.5 billion to 5 billion,” he told AFP.
Malaysia’s ownership of railway land that goes deep into Singapore territory had been an irritant for decades but both countries have vowed to resolve all outstanding issues and promote long-term cooperation.
