SINGAPORE (Aug 22): Keppel Corp’s China property arm is jointly developing 3.8ha of land in Nanjing, China, into a commercial and residential mixed-use property.
The site has a gross floor area of 99,248 sq m and can yield about 211 residential units, 342 commercial units and 79 shop units, said Keppel on Wednesday. Phase 1 is expected to be launched in 2Q20 and the entire project is slated for completion by 2024.
On Wednesday, Keppel Land China unit Shanghai Ming Bu Industrial Co (SMBI) entered a share purchase agreement with Yincheng International Holding Co to acquire a 25% stake in the JV company Nanjing Zhijun Property Development Co for 250 million yuan.
The remaining 75% stake in the JV company will be held by Yincheng and co-investor Jiangsu Aidi Property Development Co.
The development cost will be in excess of five billion yuan ($990 million), said Keppel.
After completing the 25% stake acquisition, SMBI will advance a shareholders' loan of 464 million yuan to Nanjing Zhijun for the acquisition and development of the site. The site is expected to be acquired by Nanjing Zhijun by end-December 2019.
Keppel said the deal is not expected to have a material impact on its net tangible assets per share or earnings per share for the current financial year.
Shares in Keppel closed two cents lower at $5.92 on Wednesday before the announcement.