Keppel Land China secures Shanghai site for S$241m

The property arm of Keppel Group in China has secured a 7.2-hectare site in Shanghai’s Jiading District for S$241 million to develop around 1,000 high-rise apartments.

The acquisition of the site at Nanxiang Town marks Keppel Land China’s fifth residential development in Shanghai, a news release said.

The deal was completed through two subsidiaries of the Keppel Land Group, namely Merryfield Investment Pte Ltd and Shanghai Pasir Panjang Land.

“Shanghai’s residential market is fundamentally strong and we believe it will remain resilient on the back of rapid economic growth and urbanisation,” said Mr Ang Wee Gee, executive vice chairman of Keppel Land China.

Located at a mature middle upmarket town, the site is said to be sought after by upgraders for their own occupation. The land parcel is about 30 minutes away from the city centre and is near a train station.

Strong economic growth, rising affluence and urbanisation are expected drive home ownership in Shanghai.

The Shanghai Statistics Bureau said the city’s population increased 25 per cent from 2005 to exceed 22 million by end-2010.

The completion of the Disney theme park in 2015 is also expected to drive growth in the tourism, retail and services sectors.

Keppel said the development is targeted at the middle and upper-middle income segment and the first phase of the development will be launched in the second half of 2012.

It added that the transaction is not expected to have any significant impact on the net tangible asset per share or earnings per share of the Keppel Land Group for the financial year ending 31 December 2011.

Source : Channel NewsAsia – 9 Jun 2011

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