Singapore-listed investment holding firm United Industrial Corporation (UIC) has acquired Marina Mandarin Singapore and parts of the Marina Square complex for S$675.3 million (US $495 million), according to a stock market disclosure.

UIC said it has agreed to acquire stakes from Finnegan Investments Ltd, Mackmoor, and OUE Limited in Marina Centre Holdings (MCH), which is already its existing subsidiary. MCH is a property group with investments in the Marina Square retail and commercial complex, comprising the Marina Square Shopping Mall and the Marina Square hotels – Pan Pacific Singapore, Marina Mandarin Singapore, and the Mandarin Oriental Singapore. Finnegan owns 10.27 per cent in MCH, while OUE Limited and Mackmoor holds 10 per cent and 4 per cent stake, respectively. UIC is acquiring the stakes through its indirect subsidiary S.L. Development Pte. Limited

Marina Square complex in Singapore

The proposed acquisition will pave the way for UIC and its parent UOL Group which also owns 75% stake in Pan Pacific Hanoi to jointly own the entire Marina Square mall. Once approved, UIC will have a 77.34 per cent stake in Marina Centre Holdings and 75 per cent in Aquamarina Hotel. The remaining stake will be held by UOL. UIC said the acquisition will be funded through a mix of internal resources and bank loans.

In a separate filing, OUE said the deal will see it completely divesting its minority stake in Marina Square firms for S$390 million ($288 million). Singapore Mandarin International Hotels, a subsidiary of the OUE Group, has agreed to cease operating the Marina Mandarin Singapore before 31 December 2019 as a result of the acquisition, according to the filing.