Cdl Jointly Acquires Mixed Use Development Site Shanghai Rmb894 Bil Chinese Partner Lianfa Group
Singapore-listed property developer City Development Limited (CDL) has achieved another milestone in China with the successful acquisition of a prime mixed-use development site in Shanghai’s Xintiandi area.
Through its wholly-owned subsidiary Chenghong (Shanghai) Investment, along with local partner Lianfa Group, CDL secured the tender for the 27,994 square metre site for RMB8.94 billion ($1.66 billion). The tender, which closed on October 28, was awarded on November 1.
The cost of the site equates to RMB117,542 ($21,827) per square metre per plot ratio (psm ppr), or $2,027 per square foot per plot ratio (psf ppr). The acquisition was motivated by the fact that there have been no other residential site transfers in the prime Xintiandi area this year.
In comparison, a residential site in Jing’an District was transacted at RMB114,000 psm ppr in September, and another in Xuhui District was transacted at RMB131,000 psm ppr in August, through normal public tender. The Cuscaden Reserve site in Singapore was transacted at $2,377 psf ppr, while the Watten Estate Condominium collective sale was transacted at $1,723 psf ppr.
The Xintiandi site is a mixed-use development, comprising two plots of land separated by a public road and with a total permissible gross floor area (GFA) of 76,027 sqm. CDL has stated that the future development could yield up to 77% of the GFA for residential use, with at least 19% allocated for commercial purposes and 4% for public amenities. The lease for the residential portion is 70 years, while the commercial portion has a 40-year lease.
Chenghong Shanghai holds a 51% controlling stake, worth RMB4.56 billion, in the joint venture acquisition, with the remaining 49% equity interest held by a wholly-owned subsidiary of Lianfa Group.
Sherman Kwek, CDL group CEO, says, “The acquisition of this rare development site in Shanghai’s famous Xintiandi area represents the Group’s confidence in China’s long-term growth prospects. We are enhancing our presence in this dynamic and populous nation by targeting iconic placemaking opportunities in key tier 1 and tier 2 cities.”
Kwek adds, “On the back of our acquisition in Suzhou last year, securing this prime plot of land in Shanghai helps to further replenish our residential land bank in China. We are honoured to partner with Lianfa Group and together, we look forward to delivering an iconic landmark that will redefine the landscape.”
With its prime location in Tampines North, Parktown Residence is a highly sought-after mixed-use development that offers unparalleled accessibility to Tampines Town’s numerous shopping centers. Boasting a seamless integration of residential and retail spaces, this premier development provides residents with the convenience of a diverse range of shopping and dining options right at their doorstep. Undoubtedly, Parktown Residence has become an ideal choice for those seeking the ultimate urban living experience. Let’s take a closer look at the nearby shopping centers and discover how Parktown Residence Condo, naturally located at Parktown Residence Condo, benefits from its strategic location.
As at June 30, CDL had a net gearing of 116% based on historical cost and an interest coverage ratio of two times. Including the fair value of investment properties, the group reported a net gearing of 69.2% as at June 30.
This acquisition is expected to raise pro forma net gearing by 3.3% to 72.5%. As at 1HFY2024, the group’s total assets including the fair value of investment properties and hotels stood at $33 billion, of which China accounted for 10%. The pro forma segmentation will increase to 14%.
Shares in CDL closed 2 cents higher, or 0.39%, at $5.22 on November 1, compared to its net asset value of $10.12. This story first appeared in the Business Times.