CapitaLand Development (CLD), the development arm of CapitaLand Group, has entered into a 50:50 joint venture with Mitsubishi Estate Co Ltd to develop a business park in China’s Suzhou New District, with an investment of RMB 1.5 billion (about S$318 million).
Construction is scheduled to commence in 2022 and the project 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-ha plot of land within the central business district of Suzhou New District, the new business park will have a total construction area of over 220,000 sq m. It will feature multi-tenanted buildings with provisions for research and development (R&D) activities, as well as community and lifestyle amenities, said CLD.
The business park intends to cater to demand from tenants in high-tech new economy sectors such as new-generation information and communication technologies, smart manufacturing and artificial intelligence, and also biomedical sciences.
According to CLD, the development will adopt a Singapore-style ‘garden city’ design concept, aimed to promote collaboration among companies, research institutions, government agencies and talents amidst a green and sustainable environment. It will incorporate green technologies including photovoltaic solar panels, ecological drainage systems, rainwater harvesting and energy-efficient infrastructure, plus a wide range of fitness facilities and biophilic design elements.
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, added, “Since Mitsubishi 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.”