CHINA New Town Development Company (CNTD) has entered into a strategic cooperation framework agreement with the Danyang municipal governments in the area of education and dipped its toes into a college development project under this framework agreement on the same day.
This framework agreement inked on Friday sets out the commitment of CNTD and the Danyang municipal governments to establish strategic cooperation in the investment, development and operation of education industry in the future.
For the maiden project under this framework, CNTD is taking up a 27.27 per cent equity stake in a college construction project for 300 million yuan (S$61 million).
Two of its wholly owned subsidiaries entered into formal investment agreement with Danyang Investment Group Company, Danyang State-owned Assets Operation Company (Danyang SAO) and Danyang Education Investment and Development Company. CNTD shall inject 300 million yuan into Danyang Education for a 27.27 per cent stake.
Danyang Education, the wholly owned subsidiary of Danyang SAO, is the entity for the Zhongbei College Project, which is introduced by the Danyang Municipal Government. The total investment of the project is about 2.75 billion yuan, which will cover the construction of various campus facilities.
"As investment business has been repositioned as the company's ordinary course of business from this year onwards, the relevant investment returns will be an important part of the company's revenue," CNTD said.