Keppel Land has teamed up with China Vanke, the mainland's largest developer, so that the two firms can jointly develop real estate in Singapore and China.
The first joint-venture project will be a condominium development in Tanah Merah here, said a Keppel Land statement on Tuesday.
A wholly owned unit of Keppel Land had been awarded the prime residential site for $434.55 million in October last year. Now it will sell a 30 per cent stake to a wholly owned subsidiary of Vanke, for about $135.5 million.
The 3.2ha Tanah Merah site will have 726 condominium units after development. It will be a short walking distance from the Tanah Merah MRT station. Design development is under way and the project is expected to be launched in the second half of this year.
Keppel Land's chief executive Ang Wee Gee said in the statement that his company is "constantly on the lookout for strategic alliances" that will help it achieve sustainable growth.
Keppel Land wants more business in China's high-growth cities. Mr Ang said the partnership will allow it to tap on Vanke's "deep insight and keen knowledge of the Chinese market".
Before Tuesday's announcement, Keppel Land's shares fell two cents to $3.97. It said that the transactions with Vanke are not expected to have any material impact on the net tangible asset per share or earnings per share for the current financial year.
Vanke was founded in 1984 and began investing in real estate in 1988.
The company now has developed properties in more than 60 large and medium-sized cities across China.
Sales exceeded 140 billion yuan (S$28 billion) last year, reinforcing it as the country's largest property developer.
This year Vanke also achieved the highest credit rating among property developers in China. The Tanah Merah project will be its first investment in Singapore, as the company seeks to grow its business outside the mainland.
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