Logan Property, a developer listed in the Hong Kong bourse, is considering other residential and commercial projects in Singapore, particularly those situated in prime areas, reported The Business Times.
In May, the firm and Chinese conglomerate Nanshan Group secured the residential site at Stirling Road for over SGD1 billion, which works out to SGD1,050.7 psf per-plot-ratio for the large 99-year leasehold land parcel.
This represented Logan Property’s maiden expansion into Singapore and its first international project. It is also confident that the development would become profitable given its location in the mature estate of Queenstown.
According to its Investor Relations Director Derek Lee, they have been studying to enter the city-state’s market for “quite a long time”. They decided to go ahead with their project here due to the ease of doing business and the tighter property cooling measures.
“We find that the Singapore market, particularly the operating environment and the business environment, is relatively business-friendly,” he noted, adding that the company will continue to take part in upcoming land tenders here.
In comparison, developers in China are struggling after the government introduced more stringent curbs since last October, like imposing restriction on developer financing and public land auctions.
“We are not giving up our Chinese property market but we do need to, and we also want to, look around,” he explained.
“We want to deploy more resources to have more overseas assets… to diversify our land bank portfolio, hedge the US dollar against the renminbi, and to raise our profile through brand building.”
With a market capitalisation of HKD27.9 billion (SGD5 billion) as of last week, Logan Property has largely focused on its home province of Guangdong, as well as Hong Kong and Macao’s Greater Bay area.
Its flagship development, the five million sq ft. Logan City in Shenzhen, clinched the ninth spot in China for the most number of property purchases last year.
Christopher Chitty, Senior Content Specialist at PropertyGuru, edited this story.