Keppel to develop eco-homes in Tianjin park

Source : Business Times – 21 Jul 2009

KEPPEL Corp and Keppel Land will invest a combined 705 million yuan (S$148 million) to develop a site in the Tianjin Eco-City park in China.

The 36.8-hectare site in the business park is expected to eventually yield about 5,000 homes, and office and retail space with a total gross floor area of 680,000 sq metres.

Construction will start in the first quarter of next year and proceed in phases. The first phase will yield 1,760 homes with a total gross floor area of 170,000 sq m, and commercial developments with a gross floor area of 40,000 sq m.

The sales launch of first-phase homes is expected in Q2 next year, Keppel said.

The development is located along a ‘green spine linking major transit nodes, residential developments and commercial centres’ and is close to the Eco-Business Park and commercial sub-centre, which is next to a planned light rail station.

Keppel Corp will take a 45 per cent stake in the development and Keppel Land will own the remaining 55 per cent. Keppel Land has been appointed project manager.

Kevin Wong, group chief executive of Keppel Land, said the project will ‘contribute to the development of a thriving city in an ecologically sustainable urban environment’.

‘Keppel Land has a successful track record in master-planning and executing large-scale integrated township developments,’ he said. ‘Our knowledge of and experience in the China market stands us in good stead to harness synergies and create value for Tianjin Eco-City.’

Ecologically friendly features to be built into the development include thermal insulation for buildings, the use of solar energy to reduce power consumption, and rainwater collection for recycling.

Keppel has engaged architects Skidmore, Owings and Merrill and US-based consulting firm Rocky Mountain Institute, which provides advice on sustainable developments. Keppel has also hired Parsons Brinckerhoff, an engineering consultancy firm with experience of eco-projects and developments in China.

The Tianjin Eco-City, conceived as a working model of sustainable development, is being developed by Sino-Singapore Tianjin Eco-City Investment and Development Co, an equal joint venture between a Singapore consortium led by Keppel Group and a Chinese consortium.

Keppel said the proposed investment is not expected to have any material impact on the earnings or net assets per share of Keppel Corp or Keppel Land this financial year.