Perennial's joint venture wins $68m tender for Yunnan project

An artist's impression of Kunming South HSR Integrated Development, which is expected to include a general hospital, as well as eldercare apartments and commercial units for long-term lease.
An artist's impression of Kunming South HSR Integrated Development, which is expected to include a general hospital, as well as eldercare apartments and commercial units for long-term lease.PHOTO: PERENNIAL REAL ESTATE HOLDINGS

A joint venture partly owned by Perennial Real Estate Holdings has won a 341.5 million yuan (S$68 million) tender to develop two plots of land in the Chinese province of Yunnan.

The land is next to the Kunming South High Speed Railway (HSR), and about 20km from the Kunming city centre and 25km from Kunming Changshui International Airport.

Kunming South HSR Integrated Development, as the project is known, is expected to comprise a general hospital, eldercare apartments and commercial units for long-term lease, as well as retail components and a cluster of hotels.

It will be funded via equity capital calls from shareholders of the joint venture, said Perennial, which holds 45 per cent of the entity.

The tender was awarded by the People's Government of Chenggong District, Kunming.

The development has a tenure of 40 years, with its commercial land use right expiring in 2058. It covers an area of 65,054 sq m, with a total maximum allowable gross floor area of about 627,600 sq m.

Perennial said the tender aligns with the joint venture's strategy to acquire HSR healthcare and commercial integrated developments in Tier 1 or strong Tier 2 cities and provincial capitals in China with good connections to transport hubs.

 

It added that the transaction is not expected to have any material impact on the firm's net tangible assets or earnings per share for this financial year.

A version of this article appeared in the print edition of The Straits Times on December 21, 2018, with the headline 'Perennial's joint venture wins $68m tender for Yunnan project'. Print Edition | Subscribe