Singapore Corporate News - 16 Nov 2007

Keppel Land to develop big housing project in Shanghai

KEPPEL Land is embarking on a large-scale residential project in Shanghai.

The Singapore-based developer announced yesterday that it has, through two subsidiaries, acquired full ownership of Shanghai Hongda Property Development for about $13.6 million.
Shanghai Hongda owns a 26.4-hectare residential site in Xinchang Town, in Nanhui District in south-eastern Shanghai.

With the acquisition, Keppel Land said it is 'poised to capitalise on the urban expansion and growing real estate market of Shanghai'.

Keppel Land already has three residential developments in Shanghai.

Xpress sells office building for $14m to MI-Reit

XPRESS Holdings Ltd, which prints financial reports, is selling an industrial office building for $14 million to MacarthurCook Industrial Real Estate Investment Trust (MI-Reit).

The sale of the Kallang Way property will result in an excess of approximately $2.9 million over the net book value based on the latest announced consolidated accounts, Xpress said.

Xpress will lease the property back for an initial seven-year period with an option to renew the lease for another seven years. The company said that the transaction will help fund expansion.

For MI-Reit, the deal - with an initial net yield of 7 per cent - will be accretive to its distribution per unit following completion.

MI-Reit also said that independent annual revaluations of the six properties in its initial portfolio have been completed, resulting in a $9.8 million increase in book value. The Reit's investments have increased to a total value of $592.7 million in 20 industrial properties.