Keppel Land China buys S$241mn Shanghai prime residential site

The site located in a mature middle to upmarket satellite town is accessible to quality educational facilities and other amenities.

Keppel Land China Limited (Keppel Land China) has secured a 7.2-hectare site in the established residential area of Nanxiang Town, Jiading District in Shanghai, China for RMB 1.25 billion (S$241 million) for the development of about 1,000 high-rise apartments.

The acquisition, which marks Keppel Land China's fifth residential development in Shanghai, was completed through two subsidiaries of the Keppel Land Group, namely Merryfield Investment Pte Ltd and Shanghai Pasir Panjang Land Co. Ltd.

"Keppel Land China's portfolio of prime developments is strategically located and we are focused on delivering well-planned and well-executed properties to meet the lifestyle needs of our home buyers.

"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.

The site is located in a mature middle to upmarket satellite town sought after by upgraders for owner's occupation. A 30-minute drive from the city centre at People's Square, it is also in close proximity to the train station. Quality educational facilities such as the British International School and other amenities including Carrefour and Walmart will also be in the vicinity.

The development is targeted at the middle and upper-middle income segment. The first phase of apartments is expected to be launched in the second half of 2012, according to a Keppel Land report.

With a 9.9% GDP growth in 2010 and major infrastructure investments expected over the next few years, Shanghai is primed for further growth as it seeks to become an international financial and shipping hub by 2020.

Homeownership aspirations are expected to remain strong, riding on economic growth, rising affluence and urbanisation. According to the Shanghai Statistics Bureau, Shanghai's population has jumped about 25% from 2005 and exceeded 22 million by end-2010. The targeted completion of the Disney theme park in 2015 is also expected to provide further impetus for the tourism, retail and services sectors.