ST : Beverly Hills project could cost below $1.3b

Oct 9, 2010

Beverly Hills project could cost below $1.3b

INVESTORS from Singapore and Hong Kong who paid a knockdown price for a site in the plush Los Angeles suburb of Beverly Hills could end up investing less than US$1 billion (S$1.3 billion) in a residential project.

Hong Kong-based private equity firm Joint Treasure International bought 9900 Wilshire this week for US$148.3 million - under a third of its record-breaking sale price of about US$500 million in 2007.

Joint Treasure was acting on behalf of three of its consortium partners - Hong Kong's Chow Tai Fook Group, the Wee Cho Yaw Family Group from Singapore and Mr David Chiu from Hong Kong-listed Far East Consortium International.

Mr Wee is chairman of United Overseas Bank. His family firm invests in banks, commercial properties and hotels.

Only luxury residences will be built on the site, which can accommodate 235 high-rise condominium units and 17,000 sq ft of commercial space.

Mr Daniel Yu, senior adviser to Joint Treasure, said: 'Beverly Hills is a household name... It's one of the top three cities in the whole world for residing in.'

The total investment cost 'should be less than US$1 billion', he added.

Mr Yu said the project will firstly cater to locals although potential buyers would include international investors and 'even the people from New York who have to travel to Los Angeles for business'.

There should also be interest from investors in Hong Kong, Singapore, China and the Middle East, he added.

'The beauty of the piece of land is not just the good location, it's also freehold.'

Work on the 3.24ha site can start anytime, Mr Yu said.

Formerly owned by Candy & Candy, the property was foreclosed and sold through auction by Mexican billionaire Carlos Slim's Bank Inbursa.