Keppel Land completes acquisition of waterfront site in China

Company’s 86-hectare waterfront residential cum marina development to be launched early 2012.

Keppel Land Limited (Keppel Land) has acquired an additional 66 hectares of a waterfront site in Zhongshan, Guangdong Province of China. This will be Keppel Land's first waterfront residential cum marina development in China and covers a total area of 86 hectares, according to a Keppel Land report.

Keppel Land had first announced in April 2008 its interest to develop premium waterfront homes in the affluent Pearl River Delta region of Zhongshan, located on MoDao Island in the Shenwan Town of Zhongshan City. Carried out in phases, the acquisition was done through Sunseacan Investment (HK) Company Limited, of which Keppel Land has an 80% stake through its wholly-owned subsidiary, Sunsea Yacht Club (Zhongshan) Co., Ltd.

Mr Ang Wee Gee, Executive Director and CEO (International) of Keppel Land International Limited, said, "Prime waterfront homes are highly sought after in China and Keppel Land is confident that these luxury homes, enhanced by our integrated lifestyle concept, will be well received by homebuyers and investors alike.

"With the increasing affluence of the Chinese, local homebuyers are becoming more discerning, such that owning a home is beyond the brick and mortar and involves the consideration of status, lifestyle and other value propositions associated with the development."

When completed, the development will yield about 2,000 luxurious villas with private berths, condominium units and serviced apartments. The total development cost for the first phase is estimated to cost about RMB 1.1 billion (S$225 million).

For a luxurious and complete waterfront lifestyle, approximately 30% of the total land area will be used to create channels and waterways for private berthing of about 550 boats, a clubhouse, a sailing academy and comprehensive recreational facilities for a marina lifestyle.

Part of the fast-growing Pearl River Delta region, Zhongshan has grown in affluence over the last two decades and maintained healthy economic growth. In 2009, the city achieved a Gross Domestic Product of US$23 billion (RMB 156 billion), registering a double digit year-on-year increase.

With its proximity to Hong Kong, Southern China has also witnessed a rising trend in the luxury boating industry. It has hosted prestigious international boating shows in recent years, such as the China (Shenzhen) International Boat Show in 2009, which saw RMB 250 million worth of deals being inked. In addition, Shanghai was the choice venue for the annual Christofle Asia Boating Awards in 2008.

Targeted at the upper-middle income segment, launch for the first edition of waterfront homes is expected in early-2012 and will feature luxurious villas of various sizes in excess of 400 square metres. Construction is scheduled to commence in phases from end-2010.

Fronting the Xijiang River, the integrated development is about 35 km, or a 20-minute drive to Zhongshan's city centre and is well-connected by air, sea and land infrastructure. It has access to six international and domestic airports within a 100-kilometre radius, a well-established network of ferry services to Hong Kong and Macau as well as a convenient network that links to major expressways.

With the completion of the Guangzhou-Zhuhai intercity rail link by end-2010, travelling time between Zhongshan and Guangzhou will be reduced to less than 30 minutes. Accessibility will be further enhanced when the Hong Kong-Zhuhai-Macau Bridge is completed by 2016.