Keppel Land China, a wholly-owned subsidiary of Keppel Land, has entered into an agreement with its partner and China’s leading developer, China Vanke Co. Ltd (Vanke), to jointly develop a 16.7-ha (251 mu) prime residential site in Chengdu, China.
Keppel Land China and Vanke will respectively hold 35% and 55% stakes in a property company that owns the site, while the balance 10% stake will continue to be held by the previous site owner.
The proposed development will comprise 6,480 units of high-rise apartments, 649 units of retail or street-front shops and a kindergarten. Phase One is expected to be launched in 3Q 2015 and the entire project will be completed in 2Q 2020. The estimated total development cost for the project is expected to be RMB 4.88 billion (approximately S$1.06 billion).
Mr Ho Cheok Kong, President of Keppel Land China, said, “Keppel Land continues to strengthen our collaboration and partnership with Vanke with another prime residential development, our first joint venture in China. This is also in line with the Company’s strategy to focus on key Chinese cities, including Chengdu, where we have an established presence and a strong local team.
“Leveraging Vanke’s local knowledge and extensive network, as well as Keppel’s track record in Chengdu, we are confident that the new development will attract homebuyers who seek well-located and quality homes.”
The subject site is in the northwestern region of Chengdu between the third and fourth ring roads and is easily accessible by Metro Line 2 as well as various main roads and highways. It is well-placed to benefit from the nearby High-tech West Zone, where over 6,000 companies, including five Fortune 500 enterprises, are located. The site is also adjacent to three top private schools in Chengdu.
This follows their strategic alliance in April 2013 to acquire and jointly develop residential property projects in Singapore and China. Their first joint venture project in Singapore was for the development of The Glades at Tanah Merah, which has sold about 75% of the 350 launched units to date. Construction of the residential development is currently underway.
Chengdu, the provincial capital of Sichuan and China’s fourth largest city in terms of population, continues to enjoy healthy growth as economic activity shifts to Western China. Chengdu’s GDP grew by 8.7% in the first three quarters in 2014, higher than China’s national average of 7.4%.
The new development is Keppel Land China’s sixth project in Chengdu. Its other developments in Chengdu include The Waterfront, The Botanica, Park Avenue Heights, Hill Crest Villa and Serenity Villa.