CHINA NEW TOWN Development Co Ltd (HK: 1278; SGX: D4N), a pioneering non state-owned developer and planner of new town projects in China, has completed the sale of land use rights for another residential land parcel in Luodian New Town outside Shanghai -- marking the third land sale from it’s Luodian Project this quarter.
The site area of land parcel F1-3 is approximately 54,000 square meters in gross floor area (GFA), and was sold to Winzen Investment Pte Ltd for 533 million yuan, 22.5% higher than the auction reserve price.
Winzen is a wholly-owned subsidiary of Wing Tai Holdings Ltd, a leading Singapore-listed property developer.
“We are very encouraged that our land auction received enthusiastic interest and participation from various developers.
"We are also pleased the land parcel was sold at a premium to reserve price,” said Shi Jian, Executive Chairman of CNTD.
Mr. Shi said the fact that three pieces of land were auctioned in succession reflect that the land market is experiencing a recovery in tandem with the domestic economy and secondary real-estate market during the quarter.
“We believe that with continuous support by the national policies of urbanization development, our abundant high-quality land reserve from the Luodian, Wuxi and Shenyang projects shall enjoy great potential for land appreciation and long term development,” he added.
The land parcel, with a plot ratio of 1.01 times, has a land price equivalent to 9, 900 yuan per square meter of site area and 9,802 per square meter of GFA.
CNTD first undertook the development of Shanghai Luodian Project in 2002 through a joint venture with Shanghai Luodian Asset Management & Investment Co Ltd.
Under the agreement, a new JV company -- Shanghai Golden Luodian Development Co Ltd - was set up to undertake the development of the new town project.
CNTD holds 72.6% stake in the Luodian JV company, while the Luodian JV Partner holds the remaining 27.4%.
The JV is for a period of 25 years.
Three parcels of land were successfully auctioned at CNTD’s Luodian Project during this quarter.
The latest deal follows land parcel B3-2 sold to Dahua (Group) Co Ltd for 234 million yuan and land parcel E4-1 sold to co-buyers Fujian Sunshine Real Estate 2 Development Co Ltd and Fuzhou Mawei District Lepeng Trading Co Ltd for 279 million yuan.
These three transactions are expected to make a substantial contribution to the group’s annual financial performance.
Shanghai Luodian New Town, with a total site area of 6.8 square kilometers, is the flagship new town project of the company, with the project having been in existence for over a decade.
Up until now, 70% of the total land sale of Luodian Project has been completed.
China New Town Development Co Ltd (HK: 1278; SGX: D4N) was listed in Singapore on 14 November 2007 and dual listed in Hong Kong on 22 October 2010.
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, 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 land and the town, and profit from sharing part of the sales proceeds upon land sale.
Starting from 2002, the company has engaged in the development of Shanghai Luodian New Town, Wuxi Hongshan New Town and Shenyang Lixiang New Town.
Among them, Luodian New Town has entered maturity phase and received international and domestic recognition for its innovative new town design and execution.
Luodian New Town was granted the status of the “United Nations Development Program pilot town” by the United Nations Development Program (UNDP) and the “National Development and Reform Pilot Small Town” by the NDRC.
It was also awarded the among the “most valued commercial real estate projects of the Yangtze River Delta.”
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