Keppel Land finally penetrates Beijing commercial space

Developer purchases its first ever commercial development in the capital's business district.

The 2.6-hectare site with a gross floor area of around 100,000 will offer a mix of office and retail spaces with a two-year development timeline.

The acquisition is the Keppel Land's second property project in Beijing following its 1,859-unit residential condiminum project, The Seasons.

The new commercial site was purchased by subsidiary Keppel Land China through the acquisition of Aether Pte. Ltd commercial project for a roughly $50.6 million in cash. Keppel Land, through its subsidiaries, will also repay an estimated $85.57 million in debt.

"The site has been planned for the development of three office blocks and retail premises. The development is expected to be completed by the end of 2014," said Keppel Land in a release announcing the purchase.

"The site is located in the Chaoyang district between the eastern second and third ring roads, and is within a stone's throw away from well-known landmarks such as the China World Trade Centre and the China Central Television (CCTV) Tower. As the preferred business location for many multinational corporations and state-owned enterprises, the CBD around the eastern third ring road in the Chaoyang district is the largest business district in Beijing," it added.

"The Acquisition, the APL Subscription and the AL Subscription will be financed with internal resources, and are not expected to have a material financial impact on the consolidated earnings per share and net tangible assets per share of the Keppel Land Group for the financial year ending 31 December 2012," it ended.