Foshan, China – Mapletree Investments Pte Ltd (“Mapletree”) today celebrated the ground-breaking for Phase 1 of its Nanhai Business City (“NBC”), a mixed-use integrated development located in Guicheng Street, Nanhai District of Foshan City in Guangdong Province, China.

Phase 1, which involves the development of 20 high-rise apartment blocks and a vibrant retail mall on more than 10 hectares of land, is part of a larger proposed 35-hectare development comprising retail, residential, office and hotel components, to be developed in phases according to market demand. This is Mapletree’s first commercial project in South China and its largest project to date valued at US$342 million (RMB2.3 billion) when completed.

The project is undertaken by a Mapletree-sponsored private real estate fund called Mapletree India China Fund (“MIC Fund”), which holds 80% share in the joint venture company to develop Nanhai Business City. The balance of the 20% share is held by a local Chinese partner, Mr Pan Shun Ming, Chairman of Southern Packaging Limited. Nanhai Business City is the fund’s third investment in China.

Mr Hiew Yoon Khong, Chief Executive Officer of Mapletree said, “Our investment in Nanhai Business City underscores the importance of South China as an investment location for Mapletree, particularly, the Nanhai district in Foshan City. We see a lot of potential in Foshan’s strategic location and are keen to participate in the city’s rapid urbanisation by bringing our expertise in creating vibrant integrated work-live-play environments here. We are confident that the demand for good quality residential, retail, business and other commercial real estate sectors will continue to see significant growth, given the growing affluence of the population in Foshan.”

Mapletree’s vision for Nanhai Business City is to create a vibrant, cosmopolitan hub for work, live and play featuring dynamic new work places such as a business park to cater to out-of-CBD middle and back room operations; a new retail mall to cater for today’s shopping demands, as well as modern residential and hotel components to supplement the growing needs of residents and visitors. This entire proposed project, which spans 35 hectares, will be developed in phases according to market demand.

Mr Hiew added, “China is an important investment market for Mapletree. We see Nanhai Business City as an excellent opportunity for us to scale up our business in the Pearl River Delta as well as complement the next phase of Foshan’s growth. We are currently evaluating several other suitable investments in China and India for our US$1.16 billion Mapletree India China Fund, which was specifically set up to fund our expansion in China and India.“

More about Phase 1 of Nanhai Business City

Under Phase 1 of the project, Mapletree will develop a total of about 2,000 residential apartments. These will be supported by comprehensive recreational facilities like a recreation centre, gymnasium, café, basketball court, indoor and outdoor swimming pools and lush landscaping and themed gardens, which will evoke a resort-like environment. The first batch of 270 units will be ready for sale in 3Q 2010.

Complementing the residential component, will be a four-storey retail mall, featuring a total gross floor area of about 100,000 square metres. This mall, to be known as VivoCity@Nanhai will incorporate some of the successful attributes of Mapletree’s award-winning retail mall, VivoCity in Singapore. When completed, VivoCity@Nanhai will energise the retail scene in Foshan with its interesting mix of retail, leisure and entertainment pursuits, all under one roof.

Strategic Location

Nanhai Business City, which is located in Guicheng County, the eastern side of Nanhai District in Foshan City, enjoys good accessibility as it is within a 5 and 15-minute drive to the Qiandenghu Financial Centre and Foshan downtown respectively. In addition, it is a 5 to10-minute drive from the Foshan-Guangzhou intercity metro and the future New Guangzhou Passenger Station for the high speed railway connecting Hong Kong and Wuhan, which is expected to be in operation in 2010.

The project is also about a 40-minute drive away from the Guangzhou East Train Station and the Guangzhou CBD, and an hour’s drive from the Guangzhou Airport and the Nansha Port.