Keppel Land China formed a joint venture with Gemdale (Group) to develop an 8.8 ha residential site in Nanjing, China, in an around 1.414 billion yuan, or S$283 million, deal, it said in a filing to SGX before the market open on Thursday.
The deal involves Keppel Land China acquiring Eternal Commercial, which holds an around 40 percent stake in Nanjing Jinsheng Real Estate Development, a project company incorporated to undertake the proposed development, for 1.414 billion yuan, it said. Gemdale will hold the remaining 60 percent of Nanjing Jinsheng, it said.
Eternal will become an indirect wholly owned subsidiary of Keppel, it said.
“Our entry into Nanjing is in line with the company’s strategy to expand our presence in the Yangtze River Delta region,” Ben Lee, president of Keppel Land China, said in the statement.
The development will comprise 1,728 units of high-rise apartments and 50 units of street-front shops, with phase one, comprising 787 units, expected to be launched in the fourth quarter of this year and the entire project set to be completed in the second quarter of 2022, it said.
The estimated total development cost for the project is estimated at more than 5.2 billion yuan, or around S$1.04 billion, it said.