BK Modi acquires two islands close to Singapore for $200 million project
October 2, 2009
BK Modi, one of India’s affluent businessmen and known for his eccentric business strategies has confirmed to Moneylife that he is investing $200 million to acquire two pristine Islands—Batam and Bintan near Singapore.
A suave Mr Modi said, “It is true that I am acquiring two Indonesian Islands located just about 45 km south east of Singapore. I have plans to transform both the Islands into ultra global residential and entertainment townships, which will house super-luxury homes and ultra studio apartments for high net-worth individuals (HNIs) on search for super luxury villas and also set up a 24-hour entertainment precinct. The project management team is in place to carry out the acquisition of the two Islands.”
“I am looking to buy small Islands in and around Singapore. This is also because Singapore is my next home after India and I live here,” said Mr Modi.
When asked about the source of funding for the mega-project, Mr Modi said, “The entire $200 million will be funded by Spice Global which is one of my group companies. Besides, I have set aside an additional corpus of $70 million which will go towards developing the Islands.”
“Spice Finance—one of my financial services arms along with Singapore-based 3 Degrees Asset Management has recently formed Spice 3 Degrees Special Opportunities Fund. The fund will invest in distressed assets like acquiring properties in India and Southeast Asia,” said Mr Modi.
According to realty experts, Singapore has emerged as one of the hottest destinations for HNIs and celebrities. The global economic slowdown adversely impacted the realty market in Singapore. The real estate rates are down by 30-40%. Mr Modi’s move to acquire properties like the two Islands near Singapore is related to the falling real estate cost.
Apart from the residential apartments, Mr Modi has bought several properties across Singapore. He also has plans to venture into the reality market of China and also set up a holistic wellness centre.
Meanwhile, many say Mr Modi is flush with funds after selling his stake in Spice Communications to Aditya Birla group for almost $600 million. Recently, he has acquired 51% stake in Wall Street Finance where Anil Ambani Group's Reliance Money had 36.8% holding before exiting. — Vidyut Kumar Ta [email protected]