Recently-listed property developer and construction group Tiong Seng Holdings has signed an agreement worth 4.5 billion yuan (S$921 million) with a Japanese property firm and the master developer of Tianjin Eco-City to construct the first river-front eco-neighbourhood in the eco-city.
According to Pek Lian Guan, CEO of Tiong Seng Holdings, his firm signed the contract with Mitsui Fudosan, Mitsui Group’s property arm, and Sino-Singapore Tianjin Eco-city Investment and Development Co (SSTEC) on April 29. The first phase of the project, comprising about 450 high-rise apartments, will be launched for sale during H2 2010, said SSTEC.
Mr. Pek expects the joint-venture development to have a positive financial impact on the company starting in 2012.
The consortium will jointly develop two plots – Plot 5 and Plot 12a – and are working on a possible partnership on a third plot of land – Plot 6.
“Our role in the project is as an equity investor and construction manager,” said Mr. Pek.
All three plots have a total residential gross floor area of 360,600 sq m, comprising 2,650 residential units. Plot 12a and Plot 5 are designed for mid to high-end condos, whereas Plot 6 is intended for high-end low-rise housing development.
Construction on Plot 12a, which began in December 2009, is expected to be completed by end-January 2012. On Plot 5, work is expected to begin in July 2011 and finish by February 2014. Work on Plot 6 is expected to start in September 2010 and end in November 2013.
“In addition, our initial scope of the construction management contact has also been expanded to manage the construction works, particularly in the strategic areas of green and quality systems, on all three plots of land as well,” said Mr. Pek.
Tiong Seng will oversee and manage the green system, as well as supervise the quality system throughout the construction process, looking into areas like quality checks, process checks, inspections, defects management, external audit systems, training for management, staff, sub contractors, main contractors, building material suppliers and workers.
SSTEC is a joint venture between a Singapore consortium led by the Keppel Group and a Chinese consortium led by Tianjin Teda Investment Holding Co Ltd.
The Tianjin Eco-City is a joint development between Singapore and China, with private-sector investment and development.