China New Town Development's Luodian New Town Project in Shanghai. Photo: CNTDChina New Town Development Co Ltd (HK: 1278; SGX: D4N.SI), a pioneering new town developer specializing in planning and developing new town projects across the PRC, recently completed an auction of land use rights for F1-1 -- a residential land parcel and part of the Luodian New Town Project in Shanghai.
Zhenro Group Co Ltd won the auction with a land premium of 1.35 billion yuan, representing a bid price 41.06% higher than the auction reserve price.
This marks another successful auction after one from the same project was completed in November 2012.
Zhenro Group has total assets around 30 billion yuan and was jointly ranked by industry authorities China Real Estate Research Association, China Real Estate Industry Association and China Real Estate Evaluation Centre as one of the top 50 PRC-based property developers in 2012.
It is principally engaged in large-scale developments in new towns and high-end developments in prime municipal districts.
With business mainly in Fujian, Zhenro outmuscled rivals in Shanghai’s property market and won the auction after 78 rounds of aggressive bidding.
This reflects its confidence in the high-end positioning of the project and the outstanding quality of its land parcels.
“The repeated successful land auctions show that China’s land market is on track for a healthy recovery. We believe that with committed support by the national policies in urbanization, quality new town development projects at reasonable prices have both great development prospects and substantial room for appreciation,” said China New Town Development Executive Chairman Shi Jian.
He added that intense competition at the land auction also reflects strong market confidence in the recently announced potential equity stake by China Development Bank International Holdings.
The auctioned land parcel has a land area of 110,021.90 sq m with a plot ratio of 1.01 times which is equivalent to GFA of 111,122 sq m. The sale price sets a new record in the entire Shanghai Baoshan District for this year.
The Hong Kong market has been kind to CNTD's shares of lateAverage sale prices in terms of site area are up 24% recently, underscoring the strong recovery in the land market.
The successful land sale is expected to contribute substantial revenue and cash flow to China New Town Development.
The land was developed by Shanghai Golden Luodian Development Co Ltd, a 72.63% owned subsidiary of China New Town Development, as part of the Luodian Project.
Shanghai Luodian New Town, with a total site area of 6.8 square kilometers, is the flagship new town project of CNTD.
Development of Luodian New Town began in 2002.
Founded in 2002, China New Town Development Co Ltd was first listed on the SGX in 2007 and dual listed on in Hong Kong in 2010, and is a pioneer firm dedicated to planning and developing new town projects in the PRC.
Starting from 2002, China New Town Development has been engaged in the development of Shanghai Luodian New Town, Wuxi Hongshan New Town and Shenyang Lixiang New Town among which Luodian New Town has entered a maturity phase and received international and domestic recognition for its innovative new town designs and execution.
See also:
CHINA NEW TOWN Back In Black
