The 30.3 ha site will have 6,000 waterfront flats, commercial components
KEPPEL Land has embarked on a second township development in Shenyang, China, announcing yesterday the acquisition of a 30.3 hectare site for 884 million renminbi (S$182 million).
KepLand, through its Da Di Investment unit, will develop the site into a residential township with about 6,000 waterfront apartments supported by complementary commercial components.
The project will be aimed at the upper-middle market and the initial phase of 1,200 apartments is expected to be launched progressively from the second half of 2011.
The site is in Hunnan New District outside the Second Ring Road, a 20-minute drive from the city centre and a 25-minute drive from the Shenyang Taoxian International Airport, the main air gateway to north-east China. It has a 900-metre frontage along the Hun River and additional frontage along a tributary that leads into the main river.
‘Shenyang’s economy has continued to grow strongly and the outlook for its property market is promising,’ said KepLand International’s executive director and CEO Ang Wee Gee.
‘Choice waterfront sites are few and select in Shenyang. With its connectivity and proximity to Shenyang’s central business district, we are confident Keppel’s new site will be a coveted residential address.’
Shenyang is the capital of Liaoning province and a key economic, industrial, commercial and transport hub for north-east China. It is in a major growth area called the Bohai Economic Rim.
Mr Ang has said previously that residential prices in Shenyang have been increasing by an average of 10-15 per cent a year and this is a healthy and sustainable growth rate.
KepLand’s first township in Shenyang is on 34 ha in Shenbei New District. KepLand paid 464 million renminbi for this site. When the Hunnan New District project is completed, it will increase KepLand’s portfolio in China to more than 30,000 homes.
The transaction is not expected to have a significant impact on KepLand’s net tangible assets or earnings per share for the financial year ending Dec 31, 2009.
Source: Business Times, 29 Dec 2009