Published March 7, 2007

YTL, partner clinch Sandy Island at Sentosa Cove

MALAYSIA'S YTL Corp and its partner LP World Sdn Bhd have been awarded Sandy Island at Sentosa Cove for about $89.7 million or $617 per square foot of land area.

The 145,442 sq ft man-made island in the upscale waterfront housing district's Southern Residential Precinct can be developed into 19 bungalows, each with its own private berth.

This is the Malaysian duo's second win on Sentosa Cove. In September last year, they bagged the Lakefront Collection in the locale's Northern Residential Precinct which they plan to develop into 12 luxury bungalows. The price they paid for that plot - in a less choice location than Sandy Island - was nearly $50.2 million or $378 psf.

Sentosa Cove Pte Ltd (SCPL) has decided not to award Pearl Island - next to Sandy and which was offered through the same tender exercise which closed on Nov 22 last year. The most likely reason is that the top bid was below SCPL's expectation, reckon market watchers. Both plots were offered with 99-year leasehold tenure.

YTL and LP World are understood to have been the top bidder for Sandy Island. They did not bid for Pearl Island.

In all, there are five man-made islands designated for bungalow development at Sentosa Cove. The other three are in the Northern Precinct - Coral, Paradise and Treasure. Ho Bee Investment clinched Coral Island in late 2004 for $206 psf of land area, and Paradise in August 2005 for $260 psf. Treasure was sold to a group of individual investors at an average price of $308 psf in late 2005.

YTL, headed by Malaysian tycoon Francis Yeoh, is one of the biggest companies listed on the Kuala Lumpur Stock Exchange. Its partner LP World is a Malaysian township and residential developer.