Capitaland is set to broaden its master planning and urban design capabilities in China through new strategic partnerships in China's Zhejiang province.
The company signed two memoranda of understanding yesterday to explore developing and managing large-scale business park and township projects in Ningbo and Jiaxing, two fast-growing cities in the eastern province.
Under the agreement with Ningbo's Haishu District Government, the CapitaLand China unit will look into investing in a business park comprising research and development facilities, offices, residences, and civic and community facilities that support Ningbo's push to attract higher-tech manufacturing industries.
The deal with Zhejiang Communications Investment Group involves CapitaLand exploring investing in a new-generation township comprising integrated developments, offices, residences and serviced residences built around Jiaxing's high-speed rail station in Yuxin area.
CapitaLand president and group chief executive Lim Ming Yan said the developer is in a strong position to continue playing an active role in China's next phase of urbanisation.
"Our extensive track record in integrated developments has honed our expertise in making the most efficient use of limited land supply to create vibrant communities with an optimal mix of quality live-work-place spaces that are seamlessly integrated and interconnected," he added. "As one of Asia's largest real estate fund managers, our experience in capital management is also a key success factor for mega projects with a longer development horizon."
CapitaLand said it is the largest foreign real estate developer in China with a total gross floor area (GFA) of 22 million sq m and business presence across 41 cities. It owns and manages 23 integrated developments with over 6.2 million sq m of GFA in the first-and second-tier cities. In addition, its five township projects span a combined GFA of about six million sq m.
Two of its Raffles City developments are in Hangzhou and Ningbo in Zhejiang province. It also has a second integrated development under construction in Ningbo. CapitaLand China chief executive Lucas Loh said: "We continue to eye expansion opportunities in Zhejiang as the region's economic prospects are set to receive a boost under China's Made in China 2025 blueprint, which aims to transform the country's manufacturing industry into a smart, high-quality sector."
The agreements were signed at the 13th Singapore-Zhejiang Economic and Trade Council meeting in Zhoushan and witnessed by Singapore's Senior Minister of State for Trade and Industry Sim Ann and Zhejiang's Vice-Governor Zhu Congjiu. Zhoushan is a new pilot free trade zone set up last year.