Keppel Land-China Vanke alliance reveals 726-unit condo project

Located in Singapore's Tanah Merah.

Keppel Land Limited (Keppel Land) and China Vanke Co., Ltd (Vanke) confirmed through a release that the companies have entered into a strategic partnership that will see both companies jointly develop properties in Singapore and China.

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 companies further describe the development as having 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.

Mr Ang Wee Gee, CEO of Keppel Land, said, "In shaping Keppel Land's future, we are constantly on the lookout for strategic alliances that will achieve sustainable growth in our business. Working with like-minded partners is critical in ensuring success wherever we operate, and we are pleased to collaborate with Vanke, China's foremost property developer, to build new capabilities.

"Leveraging Vanke's deep insight and keen knowledge of the Chinese market, this win-win partnership will put us in good stead as we look towards scaling up in high-growth cities in China."

Mr Yu Liang, President of Vanke, said, "Vanke looks forward to this long-term partnership with Keppel Land, one of Asia's leading property developers. We hope to be able to learn best practices from Keppel Land in the area of real estate development.

"We are confident that our first joint development project in Tanah Merah will set the pace for future collaborations in Singapore and China."

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.