CapitaLand Ltd, the largest property developer in Southeast Asia, has revealed its acquisition a 40 percent stake in Surbana Corporation, a private limited company, for S$360 million (US$288.8 million).
"We entered into this partnership with Surbana to accelerate our expansion into the value housing sector in China and Vietnam," said Mr. Liew Mun Leong, President and CEO of CapitaLand Group.
Surbana Corporation has stakes in four township development projects in China — Xi'an, Chengdu, Wuxi and Shenyang — as well as assets comprising predominantly with residential properties, along with ancillary retail properties and general amenities.
"With a large talent pool of experienced personnel in the building and development industry, Surbana has established a long and reputable track record in providing full suite consultancy services. It also has an attractive landbank through its township developments in China," said Mr. Liew.
Capitaland said it appointed JPMorgan as the financial advisor for the acquisition of Surbana.
"Combined with Surbana's townships, CapitaLand will have a total residential pipeline of more than 64,000 units in China. Surbana's townships are located mainly in Tier 2 cities, where we see tremendous growth opportunities and potential supported by rapid urbanisation and rising level of income," he said.
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