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CNTD and fund partners launch two more urbanisation projects
A JOINT fund set up by China New Town Development (CNTD) and its partners Bank of Communications Schroder Fund Management and China Development Bank Capital Corp (CDBC) has launched two more urbanisation projects.
These two shanty-town reformation projects are located in Shaoyang City and Yueyang City in Hunan province. The fund will invest 200 million yuan (S$44 million) and 246.6 million yuan into the two projects respectively.
"Riding on the Partnership's investment, the company is expected to continuously participate in the new type of urbanisation projects throughout the country, and create better returns for our shareholders," CNTD said.
CNTD's wholly-owned subsidiary CDB New Town shall contribute a lump-sum of 6.7 million yuan as the junior-tranche limited partner.
There is a guaranteed annualised investment return of 10 per cent, which is preferentially met by profit distributions from the project companies, with the respective government-designated entities to pay the difference in case such profit distributions do not satisfy the agreed investment returns.
These projects followed the fund's first investment into a project in Luzhou Jiangnan New District Qiancao Area, which is expected to generate an annual return of 48.7 per cent for CNTD.