CapitaLand acquires prime residential site in Ningbo for S$232 million
Singapore, 23 January 2014– CapitaLand Limited, through its wholly-owned subsidiary CapitaLand China, has secured a prime 57,369 square metre (sqm) residential site in Sunjia, Jiangbei District, Ningbo for RMB1,117,984,125 (approximately S$232 million) in a government land tender. This translates to about RMB8,858 (approximately S$1,840) per sqm per plot ratio.
CapitaLand plans to build an estimated 1,100 units of small and medium-sized units on the site to cater to first-time homebuyers and upgraders. Construction is expected to begin in 3Q 2014 with the first phase targeted for launch in 2015.
The site has a gross floor area of 126,212 sqm and is located at the junction of Yunfei Road and Hongda Road. It is within a newly-developed region in the north bank of Yao River, surrounded by mid to high-end residential projects and commercial developments which offer retail, hypermart, F&B and leisure facilities. Well served by main roads and easily accessible via the Airport Highway and expressway, it is a mere 800 metres away from a planned rail transit station (Line 4). It is also a short 15-minute drive from Raffles City Ningbo, CapitaLand’s iconic mixed-use development, and Summit Residences, both located in the heart of Ningbo’s Daqing South Road commercial district.
Mr Jason Leow, CEO of CapitaLand China, said: “Ningbo is China’s second-largest port with residents’ disposable income that is comparable to Shanghai’s. As a rapidly-growing second-tier city, Ningbo belongs to one of the five city clusters that CapitaLand is focused on, namely Shanghai/Hangzhou/Suzhou/Ningbo, Beijing/Tianjin, Guangzhou/Shenzhen, Chengdu/Chongqing, and Wuhan.”
He added: “Raffles City Ningbo and Summit Residences are well recognised by the Ningbo community. Leveraging these successful projects, we hope to bring yet another quality development to Ningbo residents. With its convenient location and proximity to a sought-after school, we are confident that the upcoming residential project on the Sunjia site will be well received by first-time homebuyers and upgraders.”
Raffles City Ningbo opened in 2012 and enjoys a steadily increasing average footfall of over 500,000 a month. Phase 1 of Summit Residences, launched in 2007 and completed in 2010, has sold 100% of its 776 units. Phase 2 of Summit Residences was launched end 2013 to warm response and is expected to be completed end 2014. The Group remains confident in the potential of the Chinese market and will continue its strategic objective of strengthening and deepening its presence in China through the five city clusters.
The transaction is not expected to have any material impact on the net tangible assets or earnings per share of the CapitaLand Group for the financial year ending 31 December 2014.