CapitaLand-UOL consortium bets $1.5b on Hougang as area's first land sale since 2019

The project includes about 830 new homes and Hougang's largest retail hub.

A consortium composed of CapitaLand Integrated Commercial Trust (CICT), CapitaLand Development (CLD), and UOL has been awarded the tender for the Hougang Central Government Land Sales (GLS) site for approximately $1.5b or $1,179 per square foot (sq.ft.) per plot ratio.

In a bourse filing, the manager of CICT said it will develop and own 100% of the commercial component of the 99-year leasehold site. CLD and UOL, in a 50:50 joint venture, will develop the residential component.

“This move strengthens CICT’s portfolio exposure in Singapore, aligning with our value creation strategy and maintaining a Singapore-centric focus,” said Tan Choon Siang, CEO and executive director of the manager of CICT.

The property, the first GLS parcel in the Hougang area since 2019, has around 300,000 sq.ft. of net lettable area for retail and lifestyle concepts. It will house the largest mall in Hougang, serving as a key anchor for the precinct’s next phase of growth.

“By participating in the development phase, we gain an attractive entry yield with an expected yield on cost of over 5%, which compares favourably with recent transactions of operating assets in the market,” CICT said.

CLD and UOL, meanwhile, will develop approximately 830 residential units for the mixed-use development.

The major civic hub will feature a sheltered public event space and diverse F&B offerings that enhance community vibrancy and placemaking.

“As project costs will be incurred progressively over the development timeline, CICT will adopt a holistic approach to assess funding needs. This includes evaluating the most efficient mix of debt and other financing options to maintain a strong balance sheet and prudent gearing levels,” the statement read.