Keppel Land China enters JV with Shanghai Topchain to manage investment properties

China yuan coins

Keppel Land China has entered a joint venture with Shanghai Topchain Link Century Industrial Development, or Topchain, to manage investment properties in China, mainly offices and business parks, with the potential for asset enhancement initiatives (AEI), parent Keppel Corp. said in a filing to SGX Wednesday.

Under the deal, Keppel Land China, via its indirect wholly owned subsidiary Keppel Yong Da Property Management (Shanghai), will take a 49 percent interest in the joint venture company for 4.9 million yuan, or around S$1 million, the filing said.

Topchain will hold the remainder of the joint venture after investing 5.1 million yuan, or around S$1.1 million, the filing said.

The joint venture will provide services including AEI design, planning submission and construction management during the AEI stage, followed by leasing and property management, including smart office services, during the operations stages of the properties, Keppel said.

Initially, services will be provided to some assets owned by Keppel Land China and Topchain in Shanghai, before expanding to properties held by third-party owners, the statement said.

One of the joint venture’s seed projects will be providing asset management services at Keppel Land China’s commercial property The Kube, located in Shanghai business park Zhangjiang Hi-Tech Park, Keppel said.

“The JV Co is expected to generate stable and recurring income from managing the office and business park assets. It will also allow Keppel Land China to better seize opportunities in the sizeable urban renewal market which is growing in China due to rapid urban development and land constraints in major cities,” Keppel said in the statement. “The joint venture will also offer platforms for the application of Keppel Land’s smart building solutions in China.”

The deal follows a collaboration between Keppel Land China and Topchain on the renovation of Westmin Plaza in Guangzhou, Keppel said.

The Topchain Group is a developer with experience in urban renewal projects in the Guangdong-Hong KongMacao Greater Bay Area, the filing said.

Follow Shenton Wire on Telegram to receive alerts on your phone