Singapore – Mapletree Investments Pte Ltd (“Mapletree”) today announced that it has entered into a joint venture with Seastar Science-Tech Investment Holding Group (“Seastar”), to jointly develop a mixed-use project in Xian, People’s Republic of China (PRC). Seastar, whose core businesses are diversified into information technology, beverage, supermarkets, highway and toll road development, real estate development and bio-pharmaceuticals, is an established name in the Shaanxi and Henan Provinces. Mapletree will hold a 50% stake in the joint venture company, Xian Yajian Property Co. Ltd, which will undertake the development of the project.
The project, located at Taibai Road and the 2nd Ring Road within Xian City, will comprise four residential towers with gross floor area (GFA) of about 107,200 square metres, a retail component with total GFA of approximately 59,400 square metres and a carpark area of about 22,300 square metres. When completed in end 2008, this project will have an investment value of RMB 896.2 million (approximately S$179.2 million).
Separately, its wholly-owned subsidiary, Mapletree Logistics Trust Management Ltd as manager of Mapletree Logistics Trust (“MapletreeLog”) has signed an agreement with the Xian Economic Development Zone for its investment within the zone arising from the acquisition of a distribution centre from Xian Seastar Supermarket Company (“Seastar Supermarket”). The property was purchased through MapletreeLog’s wholly foreign-owned enterprise incorporated in China – Mapletree Logistics Warehouse (Xian) Co., Ltd. for RMB 90 million (approximately S$ 17.8 million). The acquisition was completed and announced on 24 May 2007. Seastar Supermarket is a subsidiary of Seastar.
Mr Hiew Yoon Khong, CEO of Mapletree said, “We are pleased to partner Seastar in this project. We value our partnership with Seastar, which helps us not only to broaden our business networking, but also to penetrate into the rapidly growing second tier cities in China to support and participate in their growth. This collaboration further cements a strategic partnership between Mapletree and Seastar, which started when Mapletree Logistics Trust acquired its logistics facility – Xian Seastar Distribution Centre, in May this year. The joint venture will allow us to open up new opportunities to develop more real estate projects in Xian City as well as throughout Shaanxi and Henan Provinces.”
Mr Hiew added, “China presents a huge market for Mapletree both in terms of depth and breadth. We are constantly looking at the diverse range of real estate opportunities to add to our investment platforms.”
“Together with India, China will become key investment markets for Mapletree’s regional ambitions. Aside from the phenomenal growth of the first tier cities in these two countries, we are also focusing on the potential growth of the second tier cities in these markets. This Xian project is one of several assets that Mapletree is seeding in China and India for a total return fund which we will launch in the coming months,” he said.
More about the mixed-use project
The project, located at Taibai Road and the 2nd Ring Road within Xian City, is easily accessible to downtown Xian, which is just 3 kilometres away. It is also located within close proximity to two important commercial centres, the Xiaozhai Business Zone and the Hi-Tech Business Zone. Its catchment includes a residential population of 500,000 located within a 3-kilometer radius. Of this, approximately 150,000 are university or college students, including teaching staff and their families.
The project is targeted at the middle to upper-middle income group and will feature facilities and amenities catering to this group. Construction has already commenced and is targeted for completion by the end of 2008.
