Keppel Land China is forming a joint venture with Yincheng International Holding and a co-investor, Jiangsu Aidi Property Development, to acquire and develop a residential and commercial mixed-use development site in Xuanwu District in Nanjing China, Keppel said Wednesday.
Under the deal, Keppel Land China’s wholly owned subsidiary, Shanghai Ming Bu Industrial (SMBI), will acquire a 25 percent stake in project company Nanjing Zhijun Property Development from Yinching for 250 million yuan, or around S$49.5 million, Keppel said in a filing to SGX.
A subsidiary of Yincheng will hold 25 percent of the joint venture, while Jiangsu Aidi will hold 50 percent, Keppel said.
SMBI will also advance a 464 million yuan (around S$91.9 million) shareholders’ loan to Nanjing Zhijun for the acquisition and development of the 3.8 hectare site, Keppel said. The site acquisition is expected by end-December, the filing said.
The site can yield around 211 residential units, 342 commercial units and 79 shop units, Keppel said, adding the estimated total development cost for the project is expected to be above 5 billion yuan, or around S$990 million.
“This latest acquisition rides on the positive response of homebuyers to our first residential project in the Nanjing Jiangbei New Area,” Ben Lee, president of Keppel Land China, said in the statement.
“Leveraging Keppel Land’s international experience and track record, as well as Yincheng ‘s deep local insights and strong network, we are confident that the new development in Xuanwu District will meet the rising aspirations and needs of homebuyers in Nanjing,” Lee said.
Huang Qingping, chairman of Yincheng, said his company was always looking for strategic alliances.
“This project also sets the stage for collaboration between both sides on future opportunities,” Huang said in the statement.