CapitaLand buys Foshan City residential site

Singapore Companies
Published October 11, 2006

CapitaLand buys Foshan City residential site

It plans development with 470 apartments and 7,000 sq m of retail space

By UMA SHANKARI

CAPITALAND announced yesterday that it has bought a residential site in Foshan City in Guangdong Province in China for 303 million yuan (S$61 million) through a government land auction.

CapitaLand bought the 40,142 sq m residential site through its subsidiary CapitaLand (China) Investment Co Ltd. The site has a potential gross floor area of 79,997 sq m.

CapitaLand plans to build a residential development with about 470 apartments - targeted at the high to mid segment of the market - over the next two to three years, the company said.

In addition to various condominium facilities, the upcoming project will also have 7,000 sq m of retail space, the property developer said.

The company added that in accordance with the local urban planning guides, about 20 per cent of the 470 apartments will be slated for smaller units that are about 90 sq m or less in size.

The first phase of the apartments will be ready for launch by the first quarter of 2008, while the entire development is expected to be completed by 2009.

CapitaLand has a potential pipeline of about 35,000 homes in China. This latest purchase marks its first foray into Foshan City, said the company.

'There has been an increase in demand for quality homes in Foshan over the last few years,' said Lui Chong Chee, chief executive of CapitaLand Residential. Home prices in the city have been moving upwards at a steady pace, underpinned by a rising urban population and strong economic growth, Mr Lui said.

The new site is located in the Chancheng District of Foshan City, about three kilometres from the city centre, said CapitaLand.

The company added that the transaction is not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand group for the financial year ending Dec 31, 2006.

CapitaLand's shares closed 10 cents up at $5.10 yesterday.