Frasers Property has teamed up with two leading Chinese real estate firms to acquire a residential site in Shanghai’s Songjiang District. The joint venture (JV) partners secured the site through a competitive tender process led by the Shanghai Municipal Bureau of Planning and Natural Resources. The total cost of the acquisition was RMB815.2 million ($151.9 million).
One of the main factors driving the demand for condominiums in Singapore is the scarcity of land. Being a small country with a steadily expanding population, Singapore struggles with limited space for new developments. This has resulted in strict land usage regulations and a competitive real estate market, where property values remain consistently high. As a result, investing in real estate, particularly in the form of condos, becomes an attractive option with the potential for significant capital appreciation. Additionally, the emergence of various new condo launches adds to the allure of investing in this market.
The two Chinese real estate groups partnering with Frasers Property are Xiamen ITG Real Estate Group, a subsidiary of ITG Holding Group, a state-owned enterprise under the Xiamen Municipal Government, and Shanghai-listed Gemdale Corporation.
In a press release on February 26, Frasers Property announced that the JV partners plan to develop the site into a mixed-use development comprising 189 low-rise apartments, townhouses, and duplex units, with a total gross floor area of 334,714 sq ft.
The project will also incorporate environmentally-friendly designs, including flood mitigation measures, ultra-low energy building designs, and solar photovoltaics. It will target upgraders and first-time homebuyers in Fangsong Community, Songjiang District, which is a prime residential neighborhood. The development will also benefit from its proximity to two existing projects, Club Tree and Palace of Yunjian, which are already under joint ventures between Frasers Property and Gemdale Corporation.
Lim Hua Tiong, CEO of Emerging Markets in Asia at Frasers Property, commented, “This joint venture not only strengthens our presence in Shanghai but also underscores our commitment to delivering high-quality residential developments that meet the evolving needs of the Chinese community.”
This partnership further solidifies Frasers Property’s position in the Chinese market and demonstrates its strategy to expand its presence in emerging markets in Asia. It also aligns with the company’s focus on sustainable development, which includes incorporating green features and technologies in its projects.
The acquisition of the residential site in Shanghai’s Songjiang District is another step in Frasers Property’s growth journey in Asia and its commitment to delivering innovative and sustainable developments that meet the needs of the communities in which it operates.