Keppel Corp. said on Friday that its wholly owned subsidiary Keppel Land China obtained a 4.7-ha residential site in the Chengdu Tianfu New Area for 889.7 million yuan, or around S$183.4 million, in a government land tender.
The site will be developed into a residential community targeted at home upgrades and comprising 768 units of high-rise apartments and 96 units of low-rise apartments, it said in a filing to SGX after the market close on Friday.
The project in Tianfu New Area, which is a state-level development zone in Sichuan Province in China, is expected to be launched in the fourth quarter of 2019, Keppel said.
The site is located in the area’s central business district and has convenient transportation access, including being around 600 meters from the Wuhan Road Station of Metro Line 1, it said. The Tianfu New Area has been designated as a base for industries including new materials, energy conservation, biotechnology, IT and high-end equipment manufacturing, it said.
Keppel Land China has also entered a cooperation agreement with Chengdu Jin Se Hua Fu Real Estate Development for the project, it said.
Under the agreement, Keppel Land China will establish a wholly owned subsidiary, Chengdu Wan Ji Property Development, or NewCo, to develop the site, it said. If Chengdu Jin Se Hua Fu completes the necessary approvals from authorities to change the equity interest in NewCo, it will then subscribe for a 70 percent stake, it said.
Based on the projected remaining 30 percent stake, Keppel Land China’s total development cost for the project is expected to be more than 519 million yuan or around S$107 million, it said.
Ben lee, president of Keppel Land China, said in the statement that the new site is in line with the company’s strategy to expand in the growing Chengdu metropolis, where its six previous residential projects have been “very well received.”
He noted Keppel Land China has launched around 17,800 homes in the area and they are nearly sold out.