CHINA NEW TOWN has sold
WUXI PROJECT
|
two land parcels in Wuxi for RMB 203 million to a Singapore company. The Committee has also agreed to pay an extra10% per annum "based on the time lapsed from the date of capital contribution."
It announced on Feb 9 that Wuxi-Singapore Real Estate Development Co. had bought land use rights of two residential land parcels located at China New Town’s Wuxi New Town project.
The land parcels of approximately 53,769 and 65,911 sqm in site areas were sold at about RMB 108 million and RMB136 million, respectively.
That’s equivalent to RMB 2,009 per sqm and RMB 2,063 per sqm respectively.
The last achieved price for a residential land parcel from the Wuxi Project was approximately RMB 1,500 in October 2009.
China New Town first undertook the development of the Wuxi Hongshan Project in 2007, through a joint venture agreement with Wuxi New District Municipal Investment and Development Company Limited.
China New Town holds a 90% stake in the JV company while its partner, 10%. The JV is for a period of 50 years.
Approximately 84% of the proceeds from the sale of land use rights in the Wuxi Hongshan Project will be paid to the JV company.
China New Town, which is one of a kind on the Singapore Exchange, derives earnings from the sale of land as well as from operating commercial properties which it develops on land under the same projects.
Its financial results are primarily driven by the frequency of land sales, and the achieved selling prices of public auction of land use rights for its land parcels.
Background on China New Town:
It is managed by professionals and works with municipal governments. China New Town funds the relocation of residents and enterprises of land that it has undertaken to build infrastructure and utilities for.
China New Town prepares land parcels for public auction, and also acquires the land use rights to parts of the remaining land to develop, manage and operate commercial properties, such as hotels and convention centers.
In addition, it enters into agreements with the local governments to build, manage and operate public amenities, such as museums and recreational parks.
China New Town has three projects:
a) Luodian project in Shanghai, where it has sold RMB 5.3 billion worth of land parcels since 2003. The project site is 6.8 sq km, and is substantially completed.
b) Wuxi project (site area 8.6 sq km). Expected completion: 2013.
c) Shenyang project (site area 20 sq km). Expected completion: 2015.
Another project, the Changchun Automobile New Town project, has been cancelled, it was announced in late Dec 09.
China New Town had injected US$23.84 million in 2007 as capital contribution to the Changchun project, and said it would be fully repaid by the Changchun Auto Industry Development Zone Administrative Committee.
In a significant management change, China New Town announced on Jan 7 this year that its co-vice chairman, Mr Li Yao Min, has been re-designated as Co-Vice Chairman and Chief Executive Officer.
Mr Cheng Wai Ho has been re-designated from Chief Executive Officer to Chief Financial Officer. Mr Cheng subsequently tendered his resignation.
Recent story: CHINA NEW TOWN: Bought back 10 m shares in one fell swoop
