ST : UIC Building's conversion firmed up

Aug 31, 2010

UIC Building's conversion firmed up

PLANS to redevelop UIC Building have materialised after United Industrial Corp (UIC) yesterday paid an estimated development charge of $160.1 million to the Urban Redevelopment Authority (URA) to intensify the use of the land.

The building at 5 Shenton Way will be torn down to make way for a mixed development project comprising 60 per cent residential and 40 per cent commercial space, with a gross floor area of 926,589 sq ft.

According to an earlier report, the residential component may yield 593 units.

Analysts expect the residential units to be well received. Units at nearby One Shenton, which is 93 per cent sold, have regularly transacted at above the $2,000 per sq ft mark.

In February, UOL group chief executive Gwee Lian Kheng disclosed that UIC had won in-principle approval from the URA to convert UIC Building into a mainly residential development.

No firm decision was made then as the UIC board was assessing all alternatives to ensure the best use for the property.

UIC is a 32 per cent-owned associate of UOL.

In its statement yesterday, UIC said the redevelopment of the Shenton Way building will be financed by internal funds and bank borrowings.

UIC shares, which are thinly traded, eased one cent to $2.18 on a turnover of 98,000 units.

UOL shares fell five cents to $3.93 on a turnover of 471,000 units.