Keppel in joint venture to develop Nanjing residential site
The proposed development in China will comprise over 1,700 apartments and 50 shops.
A subsidiary of Keppel Corp has partnered with Gemdale Corporation to jointly develop an 8.8ha prime residential site in Nanjing, China.
This comes after Keppel Land China entered into a share purchase agreement (SPA) with Gemdale Corporation’s subsidiary to acquire all the shares in Eternal for RMB1.414 billion ($283 million).
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Eternal owns a 40 percent stake in Nanjing Jinsheng, the project company that will undertake the proposed development of the residential site. The other 60 percent stake is owned by the Gemdale group of companies.
Located within the Nanjing Jiangbei New Area – which is Jiangsu Province’s only national-level new area – the site has a permissible gross floor area (GFA) of 193,139 sq m.
In an SGX filling, Keppel revealed that the proposed development will comprise 1,728 high-rise apartments as well as 50 units of street-front shops. It expects to launch Phase 1, comprising 787 units, in the fourth quarter of 2018, and to complete the entire project by the second quarter of 2022.
“Our entry into Nanjing is in line with the company’s strategy to expand our presence in the Yangtze River Delta region,” said Keppel Land China president Ben Lee.
“Leveraging Keppel Land’s international experience and track record, as well as Gemdale Corporation’s strong local knowledge and deep insight into the Nanjing market, we are confident that the new development will attract home buyers who seek well-located, quality and thoughtfully designed homes.”
Keppel does not expect the transaction to materially affect its earnings per share and net tangible asset per share for the current financial year.
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories, email email@example.com