Keppel Land and China Vanke enter into strategic alliance
Keppel Land Limited (Keppel Land) and China Vanke Co., Ltd (Vanke) have entered into a strategic partnership that will see both companies jointly develop properties in Singapore and China.
The first joint venture project will be a condominium development in Tanah Merah in Singapore, where Wkdeveloper sig I Private Limited, a wholly-owned subsidiary of Vanke, will acquire a 30% stake from Keppel Land for an aggregate cash consideration of about $135.5 million. Keppel Land, through its wholly-owned subsidiary, Sherwood Development Pte Ltd, was awarded the prime residential site for $434.55 million in October 2012.
Mr Ang Wee Gee, CEO of Keppel Land, said, “In shaping Keppel Land’s future, we are constantly on the lookout for strategic alliances that will achieve sustainable growth in our business. Working with like-minded partners is critical in ensuring success wherever we operate, and we are pleased to collaborate with Vanke, China’s foremost property developer, to build new capabilities.
“Leveraging Vanke’s deep insight and keen knowledge of the Chinese market, this win-win partnership will put us in good stead as we look towards scaling up in high-growth cities in China.”
Mr Yu Liang, President of Vanke, said, “Vanke looks forward to this long-term partnership with Keppel Land, one of Asia’s leading property developers. We hope to be able to learn best practices from Keppel Land in the area of real estate development.
“We are confident that our first joint development project in Tanah Merah will set the pace for future collaborations in Singapore and China.”
The first joint venture project between Keppel Land and Vanke is in Singapore for the development of 726 condominium units on a 3.2 ha site at Tanah Merah. Located in an established housing estate, the development is a short walking distance to the Tanah Merah MRT station and is well-served by major expressways. Residents can also look forward to numerous malls and amenities as well as ample recreational options in the vicinity. Led by Keppel Land, design development for the project is currently underway. The project is expected to be launched in the second half of this year.
The above transactions are not expected to have any material impact on the net tangible asset per share or earnings per share of Keppel Land Limited for the current financial year.
About Keppel Land
One of Asia's premier property companies, Keppel Land is recognised for its sterling portfolio of award-winning residential developments and investment-grade commercial properties as well as high standards of corporate governance and transparency.
The Company is geographically diversified in Asia, with Singapore and China as its core markets, and Vietnam and Indonesia as its growth markets. It is focused on a two-pronged strategy of property development for sale and property fund management.
A leading prime office developer in Singapore, Keppel Land contributes to enhancing the city's skyline with landmark developments such as Marina Bay Financial Centre, Ocean Financial Centre and One Raffles Quay.
The Company is committed to grow its commercial portfolio in key Asian cities. Its portfolio of overseas commercial properties include a Grade A office development in Beijing; Seasons City, a commercial sub-centre project in the Sino-Singapore Tianjin Eco-City; a retail mall Life Hub @ Jinqiao in Shanghai, China; Saigon Centre in Ho Chi Minh City, Vietnam as well as International Financial Centre Jakarta in Indonesia.
Keppel Land is also Asia's premier home developer with world-class iconic waterfront residences including Caribbean and Reflections at Keppel Bay, Marina Bay Residences and Marina Bay Suites in Singapore.
In China, the Company’s wholly-owned subsidiary Keppel Land China is focused on developing township, residential, waterfront, commercial and mixed-use developments. Over the years, Keppel Land China has been expanding its footprint in China to over 10 cities. To date, the Company has more than 30 projects with a total GFA of 7.7 million sm, which translates to over 43,000 homes.
Keppel Land China is also an investor as well as a developer cum project manager for the Keppel Group development in the landmark Singapore-China government project, the Sino-Singapore Tianjin Eco-City.
With a pipeline of over 75,000 homes across Asia, Keppel Land is well-positioned to meet the demand for quality housing driven by urbanisation and home ownership aspirations.
An established property fund manager, Keppel Land has two property fund management vehicles, Keppel REIT, a pan-Asian commercial real estate investment trust, and Alpha Investment Partners.
In July 2012, China Vanke Co., Ltd. (Vanke) acquired a 75% stake in Hong Kong-listed Windsor Properties Holding Ltd, which was renamed Vanke Property (Overseas) Ltd.
Founded in 1984, Vanke began engaging in real estate in 1988, and was the second listed company on the Shenzhen Stock Exchange in 1991. Today, Vanke has become the largest residential developer in China with properties in around 60 large- and medium-sized cities in the Pearl River Delta region, Yangtze River Delta region and Bohai Economic Rim, as well as central and western parts of China.
In 2012, sales exceeded RMB 140 billion, reinforcing Vanke’s position as the largest property developer in the global real estate industry.
Its sustained growth as well as commitment to good governance has been widely recognised among investors. Vanke was named Forbes’ 200 Best Small Companies List, Asia’s 200 Best Under A Billion List and Asia’s Fab 50 Companies List. The Company has also been presented with best corporate governance awards and best investor relations awards by internationally-recognised media such as the IR Magazine, The Asset and Asiamoney. In 2013, Vanke achieved the highest credit rating among property developers in China.