Successful bidding of a prime land parcel in Qianhai, Shenzhen at RMB 4,207.2 million by New World Development and Chow Tai Fook Enterprises, striving to build the second commercial project of the Group in Qianhai

Back to Press Release

Successful bidding of a prime land parcel in Qianhai, Shenzhen at RMB 4,207.2 million by New World Development and Chow Tai Fook Enterprises, striving to build the second commercial project of the Group in Qianhai

(Hong Kong, 18 August 2016) - New World Development Company Limited (The “Group”; Hong Kong stock code: 00017) is pleased to announce that, the Group and Chow Tai Fook Enterprises Limited (“CTFE”) were awarded the tender by Qianhai Authority to acquire the land use rights of the land parcel T201-0092 at Qianhai Shenzhen-Hong Kong Modern Service Industry Cooperation Zone, Shenzhen at a consideration of RMB 4,207.2 million. The joint venture, owned as to 30% and 70% respectively by New World China Land Limited (“NWCL”), a wholly-owned subsidiary of the Group and a wholly-owned subsidiary of CTFE, is responsible for the project development.

The project will be the second commercial project developed by the Group following its Qianhai Chow Tai Fook Global Goods Shopping Center (“HOKO”) in that region. The Group has also become the only Hong Kong brand which develops more than one commercial project in Shenzhen Qianhai Free Trade Zone.

T201-0092 is located in Guiwan area, being the core financial business district in Qianhai, Shenzhen (深圳市前海中心金融商務區桂灣片區), and designated for commercial use with a site area of approximately 18,218 square meters and permissible total gross floor area of 170,000 square meters, of which 148,360 square meters will be allocated for office use. It is the intention of the Group to develop a financial and commercial complex on the land.

Pursuant to the terms of the tender, among other things, out of the office premises to be developed on the land, gross floor area of not less than 45,000 square meters but not more than 55,000 square meters and out of the commercial premises to be developed on the land, gross floor area of not more than 1,000 square meters shall be sold one-off to a foreign financial institution listed in Fortune 500 in 2015 as its regional headquarters or functional headquarters. The Group is in proactive negotiation with potential buyers.

The project enjoys an excellent geographical location by situating at the convergence of five metro central lines in the core area of finance and commercial development in Qianhai. It is expected that the project will boost the development of the financial industry in Qianhai, further strengthening the position of the financial industry in Qianhai among the state-level new areas across Mainland China, as well as enhancing the influence and the synergies of various industries in such core segment.

“The successful bid of the tender for this major commercial project jointly by the Group and CTFE not only reflects the full support from our major shareholders to the Group that realizes the belief of “Branches Grow with Roots Remaining as One”, but also releases the great synergy between the Group and its associated corporations. Blending the spirit of The Artisanal Movement with innovative and avant-garde ideas, the Group continues to optimize the assets, products and services in Mainland China. We will proactively identify opportunities to strengthen the brand position of New World in the market of Mainland China, provide our customers with a unique experience and create values for our stakeholders” claimed Mr. Adrian Cheng, Executive Vice-Chairman and Joint General Manager of New World Group.

The Cheng’s Family has been optimistic about the economic prospects of Mainland China, and is always confident on the long-term economic development in the PRC. Dr. Henry Cheng, Chairman of the Group, has also emphasized, on several occasions, that the Group is strived to pursue the business in Hong Kong and the PRC, reflecting how much the Group is concerned about the business development in Mainland China. As the Group’s property development and investment flagship in Mainland China, NWCL will strengthen the key real estate project development with enormous potential in Mainland China.

It is expected that the total investment of the project will be RMB 8 billion.

**************************************************************************************