A property consortium led by CapitaLand, CapitaMalls Asia and Temasek unit Singbridge Holdings has won the tender for a mixed development site in Chongqing, China.
CapitaLand said it hopes to develop the property like ION Orchard, Raffles City or Clarke Quay.
The Chao Tian Men site will be developed into a shopping mall and will also have eight towers.
The towers will have a hotel, residential units, serviced residences and office spaces.
It will also have a transport hub for a metro station, bus interchange, ferry terminal and cruise centre.
The site measures over 91,000 square metres and was awarded at a price of S$1.28 billion.
The consortium outbid five other contenders.
The total cost for the project is expected to be around S$4.1 billion and will be funded through equity and borrowings.
CapitaLand and CapitaMalls Asia each own a 25 per cent stake in the development while Singbridge owns a 30 per cent stake. The remaining 20 per cent will be held by unrelated parties.
CapitaLand is hopeful about its new investment in Chongqing.
Liew Mun Leong, president & CEO of CapitaLand Group, said: “(Chongqing) is the fastest growing city in China… We are optimistic that in five years the city will boom.”
With the latest acquisition, China assets are expected to constitute 42 to 45 per cent of CapitaLand’s total assets in the next three to five years. At the moment, it’s about 35 per cent.
CapitaLand said it is not downplaying the Singapore market, which makes up around 35 per cent of its asset currently.
Mr Liew said: “The Singapore market has been on a lull for some time… There is affordability for sure in Singapore, (and) there is good demand… it’s a question of whether you can create a good project.”
Source : Channel NewsAsia – 29 Nov 2011