Tiong Seng in Tianjin Eco-City joint venture

Singapore construction firm Tiong Seng Holdings has signed a deal to jointly develop up to three plots of land in Tianjin Eco-City.

It will be working with the property’s master developer, Sino-Singapore Tianjin Eco-City Investment and Development Co, and Japanese firm Mitsui Fudosan Residential Company.

The joint venture deal is worth 4.5 billion renminbi.

Tiong Seng holds a 9 percent stake or about S$82 million.

The two plots are expected to yield 2,250 units mid- to high-end condominiums.

The units, which will be completed in two years, could be priced between 10,000 to 12,000 renminbi per square metre.

Tiong Seng and its partners are exploring a joint development of a third plot which will feature riverfront housing. This investment is expected to impact its earnings for financial year 2012.

The firm also hopes to grow revenue contribution from its overseas ventures.

Tiong Seng’s CEO Pek Lian Guan said: “Currently, if based on last two years, our Singapore contribution is about 70% and overseas contribution is about 30%. We hope to increase our overseas contribution, hopefully, to 50-50…..no specific time frame has been set yet.”

Source : Channel NewsAsia – 20 May 2010

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