Sembcorp to co-develop innovation park in China

The 1,000-hectare Singapore-Sichuan Hi-tech Innovation Park will be located in the Chengdu Hi-tech Zone’s south park .

Sembcorp’s wholly-owned subsidiary, Sembcorp Industrial Parks, is co-developing a 1,000-hectare innovation park. The Singapore-Sichuan Hi-tech Innovation Park is located in the Chengdu Hi-tech Zone’s south park within the Chengdu-Chongqing Economic Zone.

An Investment Cooperation Agreement has been signed between Singapore-Sichuan Investment Holdings Pte Ltd, and its Chinese partner the Chengdu Hi-tech Investment Group Co., Ltd with the Chengdu government. The Agreement sets out the terms and obligations for the development of the innovation park and will take effect upon the signing of a joint venture agreement between SSIH and the Chengdu Hi-tech Investment Group.

Sembcorp holds 40% share in SSIH, a Singapore consortium that includes Temasek, Keppel and Ascendas. The SSIH and its Chinese partner, the Chengdu Hi-tech Investment Group Co., Ltd will in turn own 50:50 share in a Chinese incorporated company to co-develop the innovation park. The registered capital of the project company is approximately US$297 million, of which Sembcorp’s US$59.4 million equity investment will be internally funded.

The SSIH involves “related parties” as Sembcorp is an associate of Temasek and Temasek is a “controlling shareholder” of both Sembcorp and Keppel, holding 49.52% and 21.41% of their issued share capital respectively.