Keppel Land China strengthens foothold in Wuxi with acquisition of fifth site
Keppel Land China Limited (Keppel Land China) has secured a 6.6-ha prime city centre site for mixed-use development in Beitang District, Wuxi, Jiangsu province, China for RMB417.6 million (approximately S$82 million) which will comprise 1,135 high-rise residential apartments and commercial components.
Mr Ang Wee Gee, Executive Vice Chairman of Keppel Land China, said, "This is Keppel Land China's fifth project in Wuxi. We are confident that our strong market knowledge, development expertise and hallmark quality will attract genuine homebuyers who seek well-designed and managed residential estates in Wuxi."
Targeted at the upper-middle market, the proposed development comprises mainly two- to three-bedroom units ranging from 90 to 140 sm and will include shopping streets and SOHO (Small Office Home Office) units. The development is expected to be launched in the first half of 2015.
The development will feature recreational facilities such as clubhouse, gymnasium, children's playground and landscape gardens. The site also enjoys convenient access to numerous amenities and facilities around the vicinity, including educational institutes, supermarkets, hospitals and shopping malls.
Located three km north of the city centre and a five-minute drive away from Wuxi's Central Business District, homeowners will benefit from the site's easy and seamless connectivity to the city centre, other parts of Wuxi as well as major cities in Jiangsu and nearby provinces. The future MRT Line 1 station located next to the site will commence service in mid-2014, offering easy accessibility across the city and to nearby provinces via the Wuxi railway station.
Mr Ang added, "Wuxi's housing market is underpinned by strong economic fundamentals and is mainly driven by genuine demand from owner occupiers. Keppel Land China will continue to seize opportunities to strengthen our portfolio and build up our reputation as a choice international developer among discerning homebuyers in cities where we have presence."
According to the Wuxi Statistics Bureau, the city has achieved strong double-digit GDP growth averaging 12.8% per annum for the past five years. Wuxi's economy is expected to continue its strong growth with the operation of the Beijing- Shanghai high speed railway which began end June 2011.
In terms of GDP levels in 2011, Wuxi was ranked second in Jiangsu and ninth overall in China. Its GDP per capita of RMB 106, 998 is higher than Suzhou's RMB 100,382 and Shanghai's RMB 81,807. In the first half of 2012, Wuxi's GDP continued to expand at a growth rate of 9.9%, higher than the national GDP growth of 7.8%. Wuxi's urban disposable income per capita has been rising steadily in tandem with the economic growth, recording a 14% increase to achieve RMB 31,638 in 2011. Wuxi is also ranked seventh in 2011 Forbes China's Best Cities for business.
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.