CapitaLand signs MOUs to explore projects in Zhejiang

Singapore

CAPITALAND is set to broaden its master planning and urban design capabilities in China through new strategic partnerships in China's Zhejiang province.

The company announced on Thursday that it has signed two Memoranda of Understanding (MOUs) to explore developing and managing large-scale business park and township projects in Ningbo and Jiaxing, two fast-growing cities in the eastern province, through its wholly owned subsidiary CapitaLand China.

The signings were made at the 13th Singapore-Zhejiang Economic and Trade Council meeting in Zhoushan, and were witnessed by Singapore's Senior Minister of State for Trade and Industry Sim Ann and Zhejiang vice-governor Zhu Congjiu.

Zhoushan is a new pilot free trade zone set up last year.

Under the agreement with Ningbo's Haishu District Government, CapitaLand will look into investing in a business park comprising research and development facilities, offices, residences, and civic and community facilities that supports Ningbo's push to attract higher-tech manufacturing industries.

In the deal with Zhejiang Communications Investment Group, CapitaLand will explore investing in a new-generation township comprising integrated developments, offices, residences and serviced residences built around Jiaxing's high-speed rail (HSR) station in Yuxin area.

CapitaLand president and group CEO Lim Ming Yan said that his company is in a strong position to continue playing an active role in China's next phase of urbanisation.

He pointed to the company's "extensive track record" in integrated developments, which has honed its expertise in making the most efficient use of limited land supply to create vibrant communities with an optimal mix of live-work-place spaces that are integrated and inter-connected.

"As one of Asia's largest real estate fund managers, our experience in capital management is also a key success factor for mega projects with a longer development horizon," he added.

Lucas Loh, CEO of CapitaLand China, noted that the company was one of the earliest foreign investors in Zhejiang, and two of its signature Raffles City developments are located in Hangzhou and Ningbo.

In Ningbo, it has a second integrated development in the city's Jiangbei District, which is currently under construction. "We continue to eye expansion opportunities in Zhejiang as the region's economic prospects are set to receive a boost under China's Made in China 2025 blueprint, which aims to transform the country's manufacturing industry into a smart, high-quality sector," he said.

CapitaLand said that it is the largest foreign real estate developer in China with a total gross floor area (GFA) of 22 million sq m and business presence across 41 cities.

The group owns and manages 23 integrated developments with over 6.2 million sq m of GFA in China's first- and second-tier cities.

In addition, CapitaLand's five township projects in Chengdu, Shenyang, Wuxi and Xi'an span a combined GFA of about six million sq m.

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