SINGAPORE (Dec 20): Perennial Real Estate Holdings announced that its 45%-owned joint venture vehicle, Perennial HC Holdings, has won a tender to develop two plots of land in China located next the Kunming South High Speed Railway (HSR) Station.
The tender for the development of two plots of land with a total land area of 65,054 sqm and total gross floor area of 627,600 sqm was awarded to the JV by the People’s Government of Chengong District at a land tender price of RMB 341.5 million ($67.6 million).
The Kunming South HSR Integrated Development will be developed into a one-stop regional healthcare and commercial hub comprising medical care, eldercare, hospitality, meetings, incentives, conferences and exhibitions (MICE), as well as retail components.
Currently, the Kunming South HSR Station is the largest HSR station in Southwest China and offers quick access to major cities such as Shanghai, Beijing and Guangzhou. It is also the designated HSE gateway station expected to link Southeast Asian countries, including Singapore, to various parts of China, as part of China’s Belt Road Initiatives (BRI).
The tender will be funded via equity capital calls from the shareholders of the JV Vehicle.
Pua Seck Guan, CEO of Perennial says, “Kunming South HSR Integrated Development marks the second asset for the Perennial-syndicated JV Vehicle and the fourth HSR healthcare and commercial integrated development in China for Perennial. Together with our existing Chengdu HSR development, which is adjacent to one of the largest HSR stations in Southwest China, our presence in Southwest China has been significantly strengthened.”
Shares in Perennial last traded 3 cents lower at 60 cents on Wednesday.