Keppel Land and China Vanke enter into strategic alliance
Keppel Land Limited (Keppel Land) and China Vanke Co., Ltd (Vanke) have entered into a strategic partnership that will see both companies jointly develop properties in Singapore and China, the Keppel Corp. press release said.
The first joint venture project will be a condominium development in Tanah Merah in Singapore, where Wkdeveloper sig I Private Limited, a wholly-owned subsidiary of Vanke, will acquire a 30% stake from Keppel Land for an aggregate cash consideration of about $135.5 million. Keppel Land, through its wholly-owned subsidiary, Sherwood Development Pte Ltd, was awarded the prime residential site for $434.55 million in October 2012.
The first joint venture project between Keppel Land and Vanke is in Singapore for the development of 726 condominium units on a 3.2 ha site at Tanah Merah. Located in an established housing estate, the development is a short walking distance to the Tanah Merah MRT station and is well-served by major expressways. Residents can also look forward to numerous malls and amenities as well as ample recreational options in the vicinity. Led by Keppel Land, design development for the project is currently underway. The project is expected to be launched in the second half of this year.
The above transactions are not expected to have any material impact on the net tangible asset per share or earnings per share of Keppel Land Limited for the current financial year.
