Saturday, December 12, 2009

CapLand aims for 5,000 homes a year in China

CAPITALAND, which has a pipeline of more than 14,000 homes in China, said yesterday that it plans to launch an average of 5,000 homes a year there with its strategic partners.

The property group celebrated the 15th anniversary of its entry into China with a gala dinner in Shanghai.

CapitaLand has announced that its asset size in China at Sept 30 was $6.7 billion, or 28 per cent of the group’s total business. Its target is to grow its China business to between 35 and 45 per cent of total business in the next three to five years, which will amount to about $10 billion.

‘Potentially, the group can double its growth in China over the next five years, given the strong demand for affordable housing, organised retail, quality serviced residences and integrated developments,’ CapitaLand said in a filing to the Singapore Exchange. ‘China will be the major foreign market for the group.’

Today, CapitaLand has a portfolio in China worth more than $20 billion on a when-completed basis, comprising over 100 projects in 40 cities, such as Beijing, Shanghai, Chengdu, Hangzhou, Ningbo and Shenzhen.

Looking ahead, besides expanding its China residential business, the company has growth plans for its other business units.

For retail, 33 shopping malls in China are currently operational and another 11 are slated to open over the next two years. And for serviced residences, subsidiary The Ascott plans to open seven properties with about 1,600 units by 2011.

CapitaLand shares closed unchanged at $4.19 yesterday.

Source : Business Times – 12 Dec 2009

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