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THE firm behind the Tianjin eco-city in China clinched a three billion yuan (S$644 million) deal yesterday, with a Japanese company, to build a 40ha integrated riverfront neighbourhood.
It is the latest in a string of property deals for the city, a 30 sq km demonstration project driven by the Singapore and Chinese governments.
The Sino-Singapore Tianjin Eco-City Investment and Development Company (SSTEC) signed a Memorandum of Understanding with Japan's largest eco-friendly developer, Mitsui Fudosan, to build an eco-neighbourhood that will boast a highly coveted riverfront spot.
Due for completion in 2013, it will be built for the high-end market and will connect three adjacent plots from the valley to the riverfront to create a so-called 'walkable community'.
This will allow residents to access and share amenities such as the neighbourhood centre, schools and train stations.
SSTEC chief executive Goh Chye Boon said Mitsui is a well-established developer of premier properties, such as Tokyo Midtown, and is sought for its know-how in building eco-friendly homes.
Tianjin eco-city barely broke ground a year ago, but already has attracted total investments of 40 billion yuan, Mr Goh told The Straits Times.
The pace of development has been so swift that the start-up area of 4 sq km has expanded to 6 sq km, he added.
'At the start, we were knocking on investors' doors, but now they are knocking on ours' instead.'
The Mitsui Fudosan deal follows a string of high-profile property contracts with major developers such as China's Shimao Property Holdings and Taiwan's Farglory Group, all amounting to some 23 billion yuan.
Tianjin's next wave of investments will come from industries ranging from water technology to waste management, said Mr Goh.
This is expected to bring in another three billion yuan over the next couple of years.
Six main clusters for Tianjin eco-city's industry development have been identified for the SSTEC's team of 30 Singaporeans and 80 Chinese counterparts to pursue.
They are clean and renewable energy; water technology; green transport; environmental management; waste management; and green buildings.
'Tianjin is not just a residential city. Job creation, industry development and economic growth are all very vital for this eco-city,' said Mr Goh.
To investors, the attraction lies not only in Tianjin, but also in using it as a springboard to launch products and services into the larger northern China market, he added.
In 20 years, China's cities are predicted to grow by 350 million people - more than the entire United States' population today.
Such urban solutions will be in great demand. And by attracting investors and working with them, Singapore will develop a 'know-how' which can then be replicated to build more eco-cities, he added.
But before that, the SSTEC has to surmount some challenges, which includes creating jobs and an economy that is sustainable and would attract residents, he said.
'That's why we're constantly looking out for new and
exciting ideas,' he said.
Eco-city deals
Total investments received by SSTEC: 40 billion yuan (S$8.6 billion)
Recent high-profile property deals:
The three projects are expected to create more than 24,000 homes at a cost of more than 23 billion yuan.
Industry deals:
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