Surbana Corporation will embark on a joint venture (JV) residential development in Chengdu, China with its joint venture partner Mitsubishi Estate Co Ltd (MEC), which is Japan’s largest listed real estate company.
The 7.5ha development site is expected to yield 3,400 homes, or 3.2 million sq ft in gross floor area (GFA) when fully completed. Located in the Swan Lake Area in Chengdu’s Longquanyi District, the site was acquired by Surbana for 677 million yuan (S$137 million) via a public auction last year.
The offshore project’s JV holding company will be split 30:70 between MEC and Surbana Township Development Fund II Pte Ltd, which is a private equity real estate fund managed by Surbana Fund Management Pte Ltd.
Tan Kiang Hwee, Group CEO of Surbana Corp, noted, “We are delighted to have Mitsubishi Estate Company, a like-minded, experienced and strategic partner to jointly develop the Longquanyi township.”
“Given MEC’s stellar reputation and solid experience as a premier international developer, we are confident that our strategic tie-up will strengthen development capabilities of the project company and greatly enhance the branding of the Longquanyi township.”
On his end, Yutaka Yanagisawa, Representative Director and Executive Vice-President of MEC, commented, “We are very pleased to have the opportunity to collaborate with Surbana, which has an outstanding track record of developing well-planned townships in Singapore and China with comprehensive amenities.”
The Longquanyi Township project is Surbana’s fifth venture in China and MEC’s maiden foray into the country.
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