Keppel Land China strengthens presence in Chengdu with the acquisition of its fifth prime residential site
Singapore, 16 October 2012 – Keppel Land China Limited (Keppel Land China) has acquired a 28.7 ha prime residential site in Xinjin County of Chengdu to develop about 573 landed homes. The site is held under Chengdu Shengshi Jingwei Real Estate Investment Co Ltd, which
Keppel Land China had acquired for RMB680.4 million (approximately S$133.0 million).
The new development is Keppel Land China’s fifth residential project in fast-growing Chengdu, the capital of Sichuan and China’s fourth largest city in terms of population. The site is adjacent to Hill Crest Villa, where Keppel Land China is currently developing 274 landed homes.
Mr Ang Wee Gee, Executive Vice Chairman of Keppel Land China, said, “Chengdu is witnessing phenomenal growth as Sichuan continues to build up its reputation as a key investment zone in Western China. The acquisition of the new site further strengthens Keppel Land China’s portfolio of quality developments that enhances the lifestyle of the affluent Chinese in Chengdu.
“Leveraging our presence and track record in Chengdu, we are confident of attracting genuine homebuyers who seek well-designed homes that bear the Keppel brand and quality hallmark.”
Located in the prime residential enclave of Mumashan, the new development will be about 20 km away from the city centre and 10 km from Chengdu’s Shuang Liu International Airport. It is also close to Tianfu New City, which is poised to be Chengdu’s software town and the city’s core Central Business District with supporting lifestyle amenities.
Mr Ang added, “This latest acquisition is in line with our strategy to further our presence in key cities across China, one of which is Chengdu. Looking ahead, we will continue to seek good and well-located sites in Chengdu and China as a whole to continue building up Keppel Land China’s repute as a premium international developer among discerning homebuyers.”
Chengdu’s favourable policies, vast consumer market, low-cost labour resources and pleasant living conditions have made the city one of the best investment locations in China. According to Jones Lang LaSalle’s (JLL) March 2012 report “China 50: Fifty Real Estate Markets that Matter”, Chengdu was identified as one of the premier real estate markets and one of nine cities designated by JLL as a Tier 1.5 city. In October 2010, leading magazine Forbes had also named Chengdu as one of the world's fastest-growing cities.
With a robust economy, Chengdu’s GDP increased by 13.3% for the first half of 2012 as compared to the same period last year, higher than the national growth of 7.8%. Its rapid economic expansion, increased foreign investments and expanding population will support a stable and sustainable property market.
Currently, Keppel Land China has four developments in Chengdu – The Waterfront, The Botanica, Park Avenue Heights and Hill Crest Villa.
The 1,143-unit condominium development, The Waterfront, is fully sold. The Botanica has sold more than 7,500 units over six phases since its launch in 2005. Capitalising on positive sentiments for township homes, phase seven, the last phase in the entire development, is expected to be launched later this year. When fully completed, The Botanica will have about 9,400 homes supported by amenities such as schools, clubhouses, a shopping mall and recreational facilities.
Keppel Land China is also developing Park Avenue Heights and Hill Crest Villa. A high-rise condominium development in Panchenggang, Park Avenue Heights will yield a total of 1,555 homes. With city-living fast gaining popularity, Phase 1 comprising 575 units is expected to be launched in the fourth quarter of this year. Hill Crest Villa, which is directly adjacent to the new development, will yield about 274 landed homes. Phase 1 is expected to be launched in 2013.
The above transaction is not expected to have any significant impact on the net tangible asset per share or earnings per share of Keppel Land Limited for the current financial year.