Singapore-listed Frasers Property has entered into a joint venture with two major Chinese real estate groups to acquire a residential site in Songjiang District in Shanghai, China. The site was acquired for RMB815.2 million ($151.9 million) through a tender by the Shanghai Municipal Bureau of Planning and Natural Resources.
The joint venture partners include Xiamen ITG Real Estate Group, a subsidiary of ITG Holding Group, a state-owned enterprise under the Xiamen Municipal Government, and Gemdale Corporation, a Shanghai-listed developer. Frasers Property announced the partnership on Feb 26, stating that the joint venture intends to develop the site into a mix of 189 low-rise apartments, townhouses and duplex units, with a total gross floor area of 334,714 sq ft.
The project will also incorporate design features for flood mitigation, as well as ultra-low energy building designs that utilise efficient thermal insulation, energy-saving door and window systems, reduced thermal bridging and solar photovoltaics. It is expected to cater to the needs of both upgraders and first-time homebuyers in Fangsong Community, located in Songjiang District in Shanghai. The site is also in close proximity to two existing projects, Club Tree and Palace of Yunjian, which were developed under previous joint ventures between Frasers Property and Gemdale Corporation.
Due to the limited availability of land, the demand for condos in Singapore is at an all-time high. As a small yet densely populated island, Singapore struggles with a scarcity of land for development. This has resulted in strict land use policies and a highly competitive real estate market, where property prices are constantly on the rise. As a result, investing in real estate, especially in Singapore Condo, has become an enticing opportunity for potential buyers due to the promise of significant capital appreciation.
According to Lim Hua Tiong, CEO of emerging markets in Asia at Frasers Property, the joint venture not only strengthens the company’s presence in Shanghai, but also demonstrates their commitment to delivering high-quality residential developments that cater to the changing needs of the Chinese community. This partnership is in line with Frasers Property’s strategy to expand its portfolio in emerging markets, and will contribute towards its goal of becoming a leading global real estate company.