Singapore's Keppel buys 40% stake in Chinese residential project
A subsidiary of Singapore-based Keppel Corporation has acquired a stake in a Chinese company for about RMB1.4bn (€175m) to establish a partnership which will undertake a RMB5.2bn development project.
Keppel Land China is buying an interest in Nanjing Jinsheng Real Estate Development Co, a subsidiary of Gemdale Corporation, through the acquisition of a related company known as Eternal.
Eternal has a 40% stake in Nanjing Jinsheng Real Estate. The Gemdale group of companies holds the remaining 60% stake.
Nanjing Jinsheng is a project company created to undertake the development of a prime residential site in Nanjing, the provincial capital of Jiangsu.
The proposed development of the 8.18-hectare residential site is made up of 1,728 high-rise apartments and 50 street-front shops.
Phase 1, comprising 787 units, is expected to be launched in the last quarter of this year, with the entire project to be completed in 2022. Estimated total development cost is in excess of RMB5.20bn.
Ben Lee, president of Keppel Land China, said: “Our entry into Nanjing is in line with the company’s strategy to expand its presence in the Yangtze River Delta region.”
Yang Kan, chairman and general manager of Gemdale RE East China, said the new development in Nanjing Jiangbei New Area would lay a strong foundation for broader collaboration between Keppel Land and Gemdale in the East China region.