Keppel Land China Limited (Keppel Land China) will acquire a newly completed retail development in Jiading District, Shanghai, China, for a total consideration of RMB 500 million (approximately S$102 million).
The retail development has a gross floor area of 40,927 sm and a net lettable area of approximately 32,800 sm. It is part of a mixed-use development comprising offices, shops and residential towers. Keppel Land Retail Management, whose senior management staff has a strong track record of developing and managing numerous successful large shopping malls in Singapore, will be appointed manager.
Mr Ang Wee Gee, CEO of Keppel Land, said, “The acquisition is part of Keppel Land’s strategy to seize opportunities in key Chinese cities such as Shanghai. We will leverage our expertise, network and retail management capabilities to enhance the value offerings to this community mall in the upcoming Jiading New City Core Area, where several new residential and commercial projects are coming up.
“The acquisition, coming closely after the divestment of Life Hub @ Jinqiao, is also in line with the Keppel Land’s strategy of recycling capital to seek the highest returns.”
The retail mall is located within the Jiading New City Core Area and is directly linked to the Malu Bus terminal and the Malu Station of MRT Line 11 which connect to many residential districts in the North West region of Shanghai. The mall is easily accessible via several highways, including the Huxiang, Hujia and Jiamin Highways.
The abovementioned acquisition is expected to be completed by 1Q 2017. The transaction is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation Limited for the current financial year.