Keppel Land China secures S$368mn Wuxi lakefront residential site

The 21.5 hectare site is part of the developer’s goal to strengthen our portfolio and to build up its reputation worldwide.

Keppel Land China Limited (Keppel Land China), through subsidiary Merryfield Investment Private Limited, has secured a 21.5-ha lakefront residential site in Binhu district, Wuxi, Jiangsu province, China for RMB1.937 billion (approximately S$368 million) for the development of about 2,500 units, including commercial components. The development will be Keppel Land China's fourth project in Wuxi.

Situated within Binhu District, the site is in an established high-end residential precinct which encompasses a national wetland park and the scenic Li Lake.

"The site is a rare and coveted find in the mature and highly sought after residential enclave in the Binhu district. It is the last site available for development in the vicinity. Having now secured this site at a good value, we will leverage on our strong market knowledge, development expertise, network and brand name in Wuxi to maximise the site's potential. We are thus confident of drawing genuine home buyers who seek well-designed and managed residential estates.

"Keppel Land China will continue to seize opportunities to strengthen our portfolio and build up our repute to be a choice international developer among discerning homebuyers," said Mr Ang Wee Gee, Executive Vice Chairman of Keppel Land China.

Located in the midst of a low-density residential enclave, the site is only nine km southwest from the city centre and is easily accessible by a 15-minute drive or via the MRT Line 1 station, expected to be ready by 2014.

With an estimated 322, 905 sq m GFA, the proposed development will comprise low density homes such as villas, terraces, duplexes, as well as mid-rise units of mainly one to four-bedroom units with average sizes ranging from 60 to 330 sq m. Making up the recreational facilities are the clubhouse, a swimming pool, a gymnasium, a children's playground and a landscape garden which will enhance the living environment and fulfill the lifestyle needs of residents. The launch of the first phase is expected in early 2013.

Binhu district is the main focal area of the government's urban development plans. The Wuxi City government and administrative centre has relocated there and is now a mere five-minute drive away from the site. Surrounding amenities include a mixed development with retail, office, hotel and serviced apartments expected to be completed by 2013 as well as primary and secondary schools, hospitals, retail malls and the Wuxi Opera House. The Jiangnan University and Wuxi Institute of Technology are in the vicinity as well, according to a Keppel report.

Enjoying a robust economy, Wuxi has achieved strong double-digit GDP growth averaging 13.5% per annum for the past 5 years, according to the Wuxi Statistics Bureau. Wuxi's economy is expected to continue its strong growth with the newly opened Beijing- Shanghai high speed railway which will reduce travelling time between Wuxi and Shanghai to about half an hour, thereby facilitating greater integration in the Yangtze River Delta.

In terms of GDP levels in 2010, Wuxi was ranked second in Jiangsu and ninth overall in China. Wuxi's urban disposable income per capita has been rising steadily in tandem with the economic growth and reached RMB 27,750 in 2010, an increase of 10.9% compared to the previous year. The population growth due to migration averaged at 107,000 per annum over the past three years. This trend will continue in coming years as Wuxi offers good employment opportunities compared to neighbouring smaller cities.