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China New Town Development Company and partners to set up 10b renminbi fund

CHINA New Town Development Company's (CNTD) wholly owned subsidiary CDB New Town (Beijing) Asset Management Co, together with Bank of Communications Schroder Fund Management and China Development Bank Capital Corp (CDBC), has entered into a limited partnership agreement to set up a 10 billion renminbi (S$2.2 billion) fund.

The CDB (Beijing)-BOCOMM New-Type Urbanization Development Fund will invest in quality urbanisation projects.

Bank of Communications Schroder Fund Management will contribute the bulk, or eight billion renminbi. Meanwhile, CDB Development Fund will contribute 0.8 billion renminbi and the balance will largely come from CDBC, CDB New Town and CDB Investment Development Fund Management (Beijing) Co.

The partnership's investment will largely focus on old town reformation, shanty town reformation and primary land development as well as integrated land and property development. In addition, it will also explore investment opportunities in municipal facilities.

A CNTD spokesperson said: "The cooperation between CDBC and the company is not only limited to financing support and project pipelines, but also, through the partnership, creates a new mechanism of collaboration between the company and its parent group. The company looks forward to exploring further in-depth cooperation with its parent company and seeking various directions that are beneficial to (its) development."