Keppel Land China inks JV to acquire, develop Nanjing mixed-use site

KEPPEL Corporation unit Keppel Land China is entering a joint venture (JV) to acquire and develop a 3.8 hectare commercial and residential mixed-use development site in Nanjing, China, with an estimated total development cost in excess of five billion yuan (S$990 million), Keppel Corp announced on Wednesday.

Keppel Land China unit Shanghai Ming Bu Industrial Co (SMBI) has entered a share-purchase agreement with Yincheng International Holding Co to acquire a 25 per cent stake in the JV company Nanjing Zhijun Property Development Co for 250 million yuan.

The remaining 75 per cent stake in the JV company will be held by Yincheng and co-investor Jiangsu Aidi Property Development Co.

After completing the 25 per cent 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.

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. Phase 1 is expected to be launched in Q2 2020 and the entire project is slated for completion in 2024.

Keppel Land China president Ben Lee said: "Keppel Land China is pleased to partner Yincheng, one of the leading property developers in Jiangsu Province, to develop the prime mixed-use development site in Nanjing. This latest acquisition rides on the positive response of homebuyers to our first residential project in the Nanjing Jiangbei New Area."

Yincheng chairman Huang Qingping said this project "also sets the stage for collaboration between both sides on future opportunities".

Keppel Corp 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.

Keppel Corp shares closed down two Singapore cents or 0.34 per cent at S$5.92 on Wednesday before the announcement.