CapitaLand Group’s development arm CapitaLand Development (CLD) has formed a joint venture with Japanese real estate group Mitsubishi Estate to invest RMB1.5 billion (about S$318 million) to develop a business park in China’s Suzhou New District.
Construction of the project will begin in 2022 and the business park is expected to be completed in 2024. CLD will undertake the master planning and development of the business park, while the operations will be managed by CapitaLand Investment Limited.
Sitting on a 5-hectare plot of land within the central business district of Suzhou New District, the business park will have a total construction area of over 220,000 square metres (sq m).
CLD said that it will feature multi-tenanted buildings with provisions for research and development (R&D) activities as well as community and lifestyle amenities. “It will cater to demand from tenants in high-tech new economy sectors such as new-generation information and communication technologies, smart manufacturing and artificial intelligence as well as biomedical sciences.”
Tan Tze Shang, CEO of CLD (China), said: “CapitaLand is pleased to continue investing in Suzhou, a vibrant component of the Yangtze River Delta that has been a key driver of China’s economic development. Leveraging the Group’s extensive track record in creating vibrant communities with an optimal mix of live-work-play spaces, the new business park will enable CapitaLand to further tap into the promising growth prospects of Yangtze River Delta and support the Group’s pivot to new economy assets. Through this project, we are also delighted to deepen our partnership with Mitsubishi Estate, with which we have collaborated successfully on the recently completed Singapore-Hangzhou Science & Technology Park Phase 3 in Hangzhou Economic and Technological Development Area.”
Hirase Takehiro, Chairman and President of Mitsubishi Estate (Shanghai) Ltd., said: “Since Mitsubushi Estate Group entered China in 2011, we have successfully expanded our interests by investing in new projects across the country, including Chengpin Project, Suzhou Village Project and others. We have witnessed the great economic development potential and charm of Suzhou, which has attracted a large number of Japanese enterprises. This latest project is located in Suzhou New District, which is often referred to as ‘Japanese Highland’ with over 600 renowned Japanese enterprises. We are pleased to be collaborating again with our global partner CapitaLand Group and through the strong combination of resources from both sides, we look forward to working together to create quality international real estate products.”
According to CapitaLand, Suzhou’s gross domestic product (GDP) is ranked the second highest in the Yangtze River Delta and the sixth highest across China.
Suzhou New District is the city’s second largest national development zone after the Suzhou Industrial Park (SIP), with over 30 years of history, the company said.
“Occupying only 2.5% of Suzhou’s land area, Suzhou New District accounts for about 10% of the city’s GDP. To date, Suzhou New District has attracted close to 1,800 foreign enterprises and more than 100 research institutes. It is home to about 1,000 national high-tech new economy enterprises, over 20 publicly listed companies and about 40,000 skilled workers, including nearly 2,000 leading experts in different fields.”