China Vanke Bets on Singapore Property After U.S. ExpansionPooja Thakur
China Vanke Co., the biggest developer listed on Chinese exchanges, is entering Singapore’s property market in a venture with Keppel Land Ltd. as it expands outside its home country.
Vanke will acquire 30 percent in Keppel’s Sherwood Development Pte for S$135.5 million ($110 million), according to a joint statement yesterday. The Sherwood unit will be used to co-develop properties in Singapore and China, and the first joint venture project will be a condominium development in Tanah Merah in Singapore, according to the statement.
Chinese developers are starting to take advantage of demand for real estate around the world from Chinese nationals as the government imposes property curbs at home. Vanke, based in Shenzhen, is expanding overseas as residential prices soar in the mainland, and signed a deal with Tishman Speyer Properties LP, the owner of New York’s Rockefeller Center, in February to develop two residential towers in San Francisco that will cost $620 million and have 655 units.
Keppel, through this venture, will seek to expand in high-growth cities in China, Keppel Land Chief Executive Officer Ang Wee Gee said in the statement.
China’s new-home prices posted the largest gain in more than two years in March, according to SouFun Holdings Ltd., the country’s biggest real estate website owner. About 35 cities issued property curbs by an April 1 deadline, with Beijing banning single-person households from buying more than one residence, while Shanghai prohibited banks from giving credit to third-home buyers.
-- Editors: Rina Chandran, Khalid Qayum