Keppel Land milked S$135.5m from China Vanke JV

More projects may be under way soon.

According to CIMB, KepLand has formed a strategic alliance with China Vanke and its first JV saw the latter take up a 30% stake in KepLand’s Tanah Merah residential project in Singapore for S$135.5m. 

CIMB noted that in return, it expects KepLand to team up with the China property developer to take on more development projects in China. This should help the group to be more competitive in land acquisitions, although CIMB believes this is unlikely to drive share prices given the current policy climate.

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Meanwhile, KepLand has acquired a retail mall in Shanghai, another small step in building its investment property base in China. We believe the group still lacks scale at the moment.