KEPPEL Land is embarking on a large-scale residential project in Shanghai.The Singapore-based developer announced yesterday that it has, through two subsidiaries, acquired full ownership of Shanghai Hongda Property Development for about $13.6 million.
Shanghai Hongda owns a 26.4-hectare residential site in Xinchang Town, in Nanhui District in south-eastern Shanghai.
With the acquisition, Keppel Land said it is 'poised to capitalise on the urban expansion and growing real estate market of Shanghai'.
Keppel Land already has three residential developments in Shanghai.
'Shanghai is positioned as a global financial hub,' said Ang Wee Gee, Keppel Land's director of regional investments. 'Its property market is poised for continuing good prospects.'
Nanhui District has in recent years received significant attention from the government, owing to its strategic location adjacent to China's largest port facility, the Yangshan Deep Water Port off Hangzhou Bay.
The Shanghai government has pumped money into infrastructure and real estate development in the district. It also has plans to develop the south-eastern tip of Nanhui District into a harbour city to support the activities of Yangshan Port and trade-related industries and services, said Keppel Land. The harbour city will house 800,000 people and several industrial parks by 2020.
'Earmarked as one of key housing zones in Shanghai, Nanhui District has taken off rapidly with a surge of public and private real estate investments,' Mr Ang said.
'Our latest project is well-timed to capture Nanhui's growing housing demand, which is expected to be underpinned by strong owner-occupiers' demand over the next few years.'
According to Keppel Land, more residents are expected to be drawn into Nanhui District by increasing economic activities and opportunities pouring into the area.
The project in Nanhui District is aimed at middle-income buyers. Keppel plans to build it in phases over five years into a mixed residential enclave of 3,000 homes ranging from terrace houses to low and mid-rise apartment blocks. The development will include a club house and retail shops.
'Keppel Land has been present in Shanghai for more than a decade, during which we have established ourselves as a quality developer with keen market knowledge and strong business networks,' Mr Ang said.
'We are confident that with our valuable experience and expertise, Keppel Land is well-placed to identify and tap new opportunities, and to meet the demand for quality homes in this market.'
Keppel Land said the latest acquisition is not expected to have any significant impact on its net tangible asset and earnings per share for the financial year ending Dec 31, 2007.
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