Oei Sells Site Initially Meant For Museum

Source : The Business Times, November 13, 2007

Pasir Panjang properties sold for $52m to Freddie Tan

TYCOON Oei Hong Leong has apparently abandoned his plans to build a museum to display his vast collection of Buddha statues. It was to have been built at a site of two properties he bought earlier this year at Pasir Panjang Road.

Instead, he is selling the 55,000 sq ft freehold site to former publisher Freddie Tan for some $52 million - realising a gain of almost $14 million or 37 per cent in less than a year.

The sale was brokered by Savills, which now displays a 'Sold' sign at the site.

Earlier this year, Mr Oei struck a deal to buy the two properties, at 98 and 100 Pasir Panjang Road, from Novena Holdings for some $29.8 million. His total cost, together with earlier options to buy the buildings on the property, is said to be around $38 million.

Given his desire to house his collection of Buddha statues at a suitable site, Mr Oei could use the proceeds to buy a new property for the purpose.

The buyer of the Pasir Panjang site, Mr Tan, founded Magazines Incorporated, which published, among others, the Peak magazine. Mr Tan sold his magazine to property magnate Simon Cheong's Blu Inc for $5 million in 2003, which was subsequently sold to Singapore Press Holdings.

Meanwhile, Mr Tan used the proceeds from the sale of his magazine business to venture into property investments over the last few years.

It is not known if he is also bidding to purchase another property next to the Pasir Panjang site whose sale is also being handled by Savills. The site, 100C Pasir Panjang Road, has a five-storey building and its tender closes on Thursday. BT understands that the 34,700 sq ft freehold site has drawn strong interest from end-users and developers.

Mr Oei's purchase of the Pasir Panjang properties from Novena Holdings coincided with his investment of about $10.71 million in the furniture retailer earlier this year. He swopped his 20 million Tung Lok Restaurants shares for about 10.3 million new Novena shares in a deal worth about $2.61 million. He also paid $8.1 million in cash for 27 million new Novena shares.

The 55,000 sq ft site along Pasir Panjang Road has two buildings which were to be demolished and replaced by the museum and an office block which would have sea views.

Mr Oei owns about 10,000 Buddha statues, many rescued from temples that would have been submerged once the water level rose along China's Three Gorges Dam. He has been collecting Buddha statues for years, and has long been searching for a suitable location to display them. The statues are now stored in warehouses.

When built, the new museum - which could be sited closer to the city - could house the largest private collection of Buddha statues in the world.