Friday, September 26, 2008

Daily news - 26 Sep

Yanlord dismisses rumours of links with China graft case
Yanlord Land Group yesterday dismissed market rumours of links with a graft case concerning a former Chinese official and lifted the trading halt on its shares. The rumours surrounded the sale of units to Kang Huijun, a former vice-governor of the Pudong New Area, allegedly at a steep discount in 2001 and 2006 in exchange for help in securing land-use rights to land parcels in Pudong. Yanlord shares slipped further when trading resumed yesterday, down 4.8 per cent to 99 cents. In a filing with SGX, the Chinese property developer said the prices at which its units were sold to Mr Kang were set in view of the publicity benefits his residency could have on the sale of units at the development. Yanlord denied having received any help from Mr Kang to secure land-use rights.

OUB Centre to get $540m adjacent office tower
United Overseas Bank and OUB Centre will invest $540 million to jointly develop a new commercial tower in the heart of Raffles Place. The 38-storey development will take shape next to the existing OUB Centre tower and retail mall. The three components will together be known as One Raffles Place. Due for completion in 2011, the tower will provide 350,000 square feet of prime Grade A office space. The site has a remaining tenure of around 75 years but there are plans to top this up to 99 years. The $540 million investment excludes land cost and will be financed through syndicated loans from several financial institutions. OUB Centre, which counts Overseas Union Enterprise, UOL Group and the Kuwait Investment Office among its shareholders, owns an 81.54 per cent stake in the partnership. An anticipated economic slowdown and the US financial turmoil have affected outlook for the office property sector.

Source: Kim Eng

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