- Jun 05, 2014
- CNTD completed the first land sale after having become a member under CDB Capital The commercial land plot in Shanghai Luodian was sold at RMB120m
(Hong Kong and Singapore, 5 June 2014) ― China New Town Development Company Limited (the “Company”, “CNTD”; HKSE: 1278.HK; SGX: D4N.SI, the flagship land development listed platform of China Development Bank Capital Corporation Ltd. (“CDB Capital”)), is pleased to announce the successful auction of land use right of the land parcel C6-2 located at the Company’s Shanghai Luodian project by the Shanghai Municipal Bureau of Planning and Land Resources on 5 June 2014. The buyer is Shanghai Ruilong Investment Co. Ltd. (上海瑞龍投資有限公司). It is reported that Shanghai Ruilong Investment Co. Ltd. is a subsidiary of Powerlong Real Estate.
The land parcel with a site area of approximately 14,045.5 square meters is for commercial use, with a plot ratio of 2.0 times. The land parcel was successfully auctioned at reserve price RMB124.45 million, representing an average selling price of RMB 8,860 per square meter in terms of site area.
The land sale is a breakthrough of the Company’s core business since it has become a member of the pedigree under China Development Bank in March of this year. The successful land sale at the Luodian project is evidence that despite uncertainties in the China real estate industry, the demand for the land resources at the Company’s Luodian project remains stable and healthy. The land sale also reflects the new management’s execution as well as their determination to create values for shareholders.
CNTD first undertook the development of Shanghai Luodian Project in 2002, through a joint venture (“JV”) agreement with Shanghai Luodian Asset Management & Investment Co., Ltd
(“Luodian JV Partner”). Under the agreement, a JV company – Shanghai Golden Luodian Development Co., Ltd (“Luodian JV Company”) was established to undertake the development of the new town project. CNTD holds 72.63% stake in the Luodian JV Company, while the Luodian JV Partner holds the remaining 27.37%. The JV is for a period of 25 years.
About China New Town Development Co. Ltd.
(HKSE: 1278.HK; SGX: D4N.SI)
With its new town development founded in 2002, China New Town Development Co. Ltd. was first listed on the SGX in 2007 and dual listed on HKSE in 2010. It is a company dedicated to planning and developing new town projects in the PRC. Its actual controlling shareholder is China Development Bank Capital Corporation Ltd. (“CDB Capital “). CDB Capital is a wholly owned subsidiary of China Development Bank. Its establishment was approved by the State Council. With a registered capital of RMB 47.6 billion, CDB Capital is a unique integrated investment platform covering both domestic and offshore markets. Its investments cover areas the strategic new model township developments, overseas investments, and funds. Integrated new model township development is one of the core businesses of CDB Capital. Through its unique business model, the Company forms joint ventures with local governments to develop new town projects, and participate in the full range of activities including master planning, resident relocation and resettlement, land clearing and preparation, construction of infrastructure and high quality ancillary facilities. It also introduces quality brands and leading real estate developers into the new towns it operates to enhance the long term value of the town and its land resources. It then shares part of the value enhancement upon land sales. Starting from 2002, the Company has been engaged in the development of Shanghai Luodian New Town, Wuxi Hongshan New Town and Shenyang Lixiang New Town. Among them, the Luodian New Town has entered maturity phase and received international and domestic recognition for its innovative new town design and execution. The Luodian New Town was granted the prestigious status of “United Nations Development Program Pilot Town” by the United Nations Development Program and “National Development and Reform Pilot Small Town” by the National Development and Reform Commission (NDRC). Recently, it was awarded the “EU Small Town Union – Representative Member from Asian Pacific”.