TWO Singapore property giants, CapitaLand and Keppel Corp, are expanding their China footprints with fresh forays into the financial hub of Shanghai.
CapitaLand said yesterday that its unit, CapitaLand China, had acquired a 70 per cent stake in Shanghai Guang Chuan Property for $397.5 million.
Shanghai Guang Chuan Property owns a prime site in Hanzhonglu in the Zhabei district of Shanghai, which will be developed into a mixed-use project comprising homes, offices and shops.
Construction of the project will begin in 2015 and is expected to be completed by 2017.
The 25,427 sq m site is centrally located, a 15-minute drive from Shanghai's central business district.
Shanghai Guang Chuan Property is a unit of Shanghai Shentong Metro Assets Management, which develops and manages properties above and along various metro stations in the city. This is CapitaLand's first partnership with Shentong Assets.
CapitaLand China chief executive Jason Leow noted that rapid urbanisation has spurred the development of public transport infrastructure in Shanghai, which opens up opportunities for the developer.
"Shanghai will have 570 km of metro lines by 2014 with over 350 stations. CapitaLand China, with our unique multi-sector real estate knowledge and capabilities, will be able to integrate our mixed developments seamlessly with the metro stations."
Keppel Land China, part of Keppel Corp, meanwhile, has acquired a prime 17.5ha residential site in Shanghai's Sheshan area for 1.33 billion yuan (S$271.8 million).
Keppel will be developing about 200 landed homes on the site, ranging from 250 sq m to 350 sq m each.
Keppel Land chief executive Ang Wee Gee said: "China is one of Keppel Land's core markets and we are committed to strengthening our foothold in high-growth cities, such as Shanghai, where we have an established presence."
The new development will be Keppel Land China's ninth project in Shanghai.
When completed, residents can look forward to amenities including shops and a clubhouse with full facilities.
The first phase of homes is expected to be launched in the second half of next year. The site is about 11km south-west of Villa Riviera, the firm's first villa project in Shanghai.
Shanghai's economic growth has drawn top-tier developers from around the world. According to the Shanghai Statistic Bureau, the city's gross domestic product grew 7.8 per cent in the first quarter of this year, higher than the national GDP growth of 7.7 per cent for the same period.
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