Frasers Property has teamed up with two leading Chinese real estate companies to jointly acquire a residential site in Shanghai’s Songjiang District. The acquisition, valued at RMB815.2 million ($151.9 million), was made through a successful tender bid to the Shanghai Municipal Bureau of Planning and Natural Resources.
The joint venture partners include Xiamen ITG Real Estate Group, a subsidiary of state-owned enterprise ITG Holding Group under the Xiamen Municipal Government, and Shanghai-listed Gemdale Corporation. The partnership was officially announced in a press release on February 26.
According to Frasers Property, the JV partners plan to develop the site into a mix of 189 low-rise apartments, townhouses, and duplex units, with a total gross floor area of 334,714 sq ft. The project will also feature innovative design elements such as flood mitigation, ultra-low energy building designs, and energy-saving door and window systems.
The developers have identified the project as a prime location for upgraders and first-time homebuyers in Fangsong Community. The area is well-connected to established residential developments, such as Club Tree and Palace of Yunjian, which are also under joint ventures between Frasers Property and Gemdale Corporation.
Lim Hua Tiong, CEO of emerging markets in Asia at Frasers Property, expressed the company’s commitment to delivering high-quality residential developments that cater to the changing needs of the Chinese community. He also noted that this joint venture strengthens Frasers Property’s presence in Shanghai.
The acquisition is seen as a strategic move by Frasers Property to expand its footprint in the Chinese real estate market and offer innovative and sustainable housing solutions to homebuyers in Shanghai.