(EQS-News / 21/07/2015 / 12:30 UTC+8)
[For Immediate Release]
China New Town Invests in Luzhou Shanty-town Reformation Project,
To Secure a 48.7% Investment Return
(Hong Kong and Singapore, 20 July 2015) - China New Town Development
Company Limited - the future blueprint planner and leading developer of
integrated new towns in China (the "Company", "CNTD", the "Group"; HKSE:
1278.HK; SGX: D4N.SI), is pleased to announce that Luzhou Jiangnan New
District Qiancao Area Shanty-town Reformation Project (?????????????????,
the "Project"), the first project was promptly launched within one month of
entering into the CDB (Beijing) New-Type Urbanization Development Fund
agreement (the "Development Fund" or the "Partnership" ).
The Partnership intends to contribute RMB 300 million of capital to Luzhou
Jiangnan Construction Development Company Limited (the "Project Company")
for a period of four years. China New Town, as the junior-tranche limited
partner, proportionally contributes 1.5% of the total amount, equivalent to
RMB4,500,000 for the investment in the Project. Luzhou has achieved a GDP
of RMB 126 billion in 2014, the third year in a row of over RMB 100 billion
with growth economic indicators ranking among the highest in Sichuan
Province. This project is the major shanty town reformation projects, and
has been included in the 10-million-unit national shanty town reformation
plan. Luzhou Jiangnan Construction and Investment Company ("Jiangnan
Company") has been designated as the entity to implement the Project. The
Partnership, amounting to RMB 10 billion initiated by China Development
Bank Corporation ("CDBC"), focuses on old town reformation, shanty town
reformation, primary land development and integrated land and property
development. It will also explore investment opportunities in municipal
facilities, such as water supply, waste disposal, environment protection,
public utilities, etc.
Jiangnan Company is required to make a payment of investment return at
12.4% per annum to the Partnership in each fiscal year, and purchase the
equity interest in the Project Company held by the Partnership at the
expiry date of the four-year term. The cash outlay in relation to the
guaranteed investment return and equity purchase arrangements will be
included in the Luzhou City's fiscal budget, and Luzhou Municipal Finance
Bureau and will pledge its holding in the Jiangnan Company and the Luzhou
Municipal Government will provide an irrevocable and unlimited
responsibility guarantee respectively, and Jiangnan Company will provide
assets or land-use rights as collaterals. With such multiple layers of
credit enhancement, the Project no doubt features excellent risk-reward
profile.
Commenting on the investment in Luzhou Shanty-town Reformation Project, the
spokesperson of China New Town Development says, "The Project is the first
shanty-town reformation project of the Partnership since establishment. The
prompt project launch fully reflects the project resources and investment
experience of the Company's controlling shareholder, CDBC, in the field of
national urbanization. The Project is expected to generate an annual return
of 48.7% to the Company with its features of low risk and high investment
return.
As more projects come in place with the Partnership's investment, CNTD is
expected to participate in more diversified urbanization projects
nationwide with relatively low investment amount. While enjoying a high
return on investments, the Group will have access to explore other
downstream business, solidifying its investment model and enhancing the
project diversification and economy of scale. As PRC's leading investment
institute in urbanization, CDBC, China New Town's controlling shareholder,
is fully committed to supporting China New Town in fast expansion of its
project network and business scale so as to accelerate China New Town's
value creation to shareholders."
-END-
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 50.9
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".
Enquiry
Hong Kong Singapore
Financial PR (HK) Limited Financial PR (Singapore) Limited
Dawn Lee, Canace Xie, and Alex Charlotte Fu, Zhang Yuchao, and Ngo Yit
Wang Sung
Email:staff@financialpr.hk Email:staff@financialpr.sg
Tel: (852) 2610 0846 / 633 55 933 Tel: (65) 6438 2990
Fax: (852) 2610 0842 Fax: (65) 6438 0064
End of Press Release
+++++
Document: http://n.equitystory.com/c/fncls.ssp?u=LKPBGGFECS
Document title: China New Town Invests in Luzhou Shanty-town
Reformation Project, to Secure a 48.7% Investment Return
=--------------------------------------------------------------------
Key word(s): Real Estate
21/07/2015 UTC+8 Dissemination of a Press Release, transmitted by EQS
TodayIR - a company of EQS Group AG.
The issuer is solely responsible for the content of this announcement.
Media archive at www.todayir.com
=--------------------------------------------------------------------
379423 21/07/2015 UTC+8
(END) Dow Jones Newswires
July 21, 2015 00:30 ET (04:30 GMT)
