Property developer Keppel Land China Ltd. secured a 4.7-hectare site in China's Sichuan province for 889.7 million yuan, with a view to developing a residential community consisting of 768 high-rise apartments and 96 low-rise apartments.
The Keppel Corp. Ltd. unit secured the Chengdu Tianfu New Area site through a government land tender Dec. 27, with the project expected to be launched in the fourth quarter of 2019.
Keppel Land China also entered into a cooperation agreement with Chengdu Jin Se Hua Fu Real Estate Development Co. Ltd., which wll see the former set up a 100%-owned subsidiary, Chengdu Wan Ji Property Development Co. Ltd., to develop the new site.
Chengdu Jin Se Hua will subscribe to a 70% stake in Chengdu Wan Ji Property, subject to the former completing necessary procedures for the change in equity interest in the latter, with the transfer expected to be completed in the first quarter of 2019.
Based on its 30% stake, Keppel Land China's total development cost for the project is expected to be more than 519 million yuan.
As of Dec. 28, US$1 was equivalent to 6.88 Chinese yuan.