http://www.straitstimes.com/Money/St...ry_764615.html

Chinese developer eyes $500m IPO in Singapore

Qingjian could be first mainland developer with a base here to list

Published on Feb 9, 2012


Visitors checking out Qingjian Realty's Riversound Residence launch on Jan 15. Qingjian could launch its IPO by the end of this year or the beginning of next year. -- ST PHOTO: TED CHEN

By Esther Teo, Property Reporter


CHINESE developer Qingjian Realty is looking to raise up to $500million in a listing by the beginning of next year.

If the initial public offering (IPO) comes off, it could be the first Chinese developer with a base here to list.

Managing director Zuo Hai Bin told The Straits Times that the company has already started on the listing process, and plans to use Singapore as a springboard to expand further in the region to countries such as the Philippines and Myanmar.

The builder of mass-market homes could launch its IPO by the end of this year or the beginning of next year, depending on market sentiment.

The clear regulations and stable and transparent property market make Singapore a good place to list, he added.

Mr Zuo said the company had initially intended to diversify into the higher-end segment, but these plans are on hold for a year or two due to lacklustre demand in the luxury segment and the recent additional buyer's stamp duty.

He acknowledged that competition is keen in estates such as Punggol and Sengkang, where the Government has released a large supply of land, but is confident that its projects there will do well.

'The Government is pushing to develop the area, with a lot of build-to-order flats and executive condos being pushed out. This will get more people to live there, which will make the estates more vibrant,' Mr Zuo said.

'We want to go in together with the Government in developing these areas, but, of course, we will be looking at other areas as well.'

While transaction volumes are likely to fall, he believes that private suburban home prices should remain stable this year as they are supported by the prices of executive condominiums, and Design, Build and Sell Scheme (DBSS) flats.

'Some people have lost money in the stock market, and property is seen as a good investment asset class and a good place to park your cash. A lot of foreigners want to invest here for reasons such as wealth, security, immigration and their children's education,' Mr Zuo said.

The Qingjian group began operations here as a contractor for Housing Board projects. Its first foray into development came in 2008 with Natura Loft - a Housing Board DBSS project in Bishan.

Since then, the group has launched three other projects, including executive condominium project RiverParc Residence in Punggol and private condominium Nin Residence next to the Potong Pasir MRT station.

Some of its bids have also been fairly aggressive as the group looks to expand its development arm.

Qingjian's bid of $607 per sq ft per plot ratio in June 2010 for the Nin Residence site, for example, was a record land price for the area and ahead of more established property players like Frasers Centrepoint, Far East Organization and Hong Leong Holdings.

Its most recent project is Riversound Residence on Sengkang East Avenue, and the company plans to launch another private condominium site in Punggol in June.

[email protected]