SINGAPORE (Jan 1): Keppel Land China is acquiring a 11-storey commercial property in Zhongguancun, widely known as China's Silicon Valley for an aggregate cash consideration of RMB 555 million ($111 million).

On Dec 31, Keppel Corp announced wholly-owned subsidiary Tosalco has entered into an agreement with A Li Yun Shan (Beijing) Business Consulting Co. to secure a 100% stake in Beijing Chang Sheng Business Consulting Co which owns the property.

Located at the Greater Wuluju Area of Haidian District in Beijing, the property consists of nine storeys of office space with 8,532 sqm of gross floor area, two storeys of retail space with 2,104 sqm of gross floor area and 23 car park lots with 992 sqm of gross floor area.

The property is also sited directly above the existing Subway Line 6 Haidian Wuluju Station, connecting it to Beijing city centre as well as Tongzhou, Beijing's new municipal centre.

Also located in the vicinity are the headquarters of the China State Administration of Foreign Experts Affairs and China National Space Administration, and top universities such as Renmin University of China, Beijing Foreign Studies University and Beijing Jiaotong University.

Ben Lee, President of Keppel Land China, says, "The acquisition is in line with our strategy to grow our commercial portfolio in China, with a focus on first-tier cities. We are confident that this strategically located property will meet the rising demand for prime office and retail space in Beijing. Securing the project is opportune considering that it is a completed asset enjoying almost full occupancy and in a city where supply for quality commercial developments is limited."

The above transaction, which is expected to be completed in 1Q19, is not expected to have any material impact on the earnings per share and net tangible asset per share of Keppel Corporation for the financial year FY2018.

Shares in Keppel closed at $5.91 on Monday.