Century Bridge Announces $122 Million China Residential Development

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$11.5 Million Investment in 840 Unit Joint Venture Project Adds to China Portfolio

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Mar 30, 2016, 08:00 ET

DALLAS and BEIJING, March 30, 2016 /PRNewswire/ -- Century Bridge Capital announced today that it has invested $11.5 million in a joint venture real estate development for a middle-income, residential project in Ningbo, China. The investment follows previously announced joint venture residential investments in Wuhan, Hangzhou, Wuxi, Zhongshan, and Dalian, China on behalf of Century Bridge China Real Estate Fund, L.P.

Commenting on the investment Century Bridge CEO, Tom Delatour, noted, "Market dynamics in this submarket are attractive at this point in time. Land sales volumes and pricing as well as construction starts are down. According to China Real Estate Index System ('CREIS'), excess supply in the submarket is getting absorbed with only about six months' worth of inventory remaining. Additionally, disposable income growth has continued to outpace housing price growth, making housing more affordable. We are seeing additional equally attractive opportunities as a result of many investors turning their backs on the market at a time when prices are starting to stabilize and the supply-demand relationship is becoming more favorable for new developments.

"Like our previous investments, the Ningbo project is consistent with our established strategy and reflects the characteristics we believe are essential for successful joint venture residential developments in Tier 2 and 3 cities in China. In addition to the favorable dynamic between affordability and home prices it is in an in-fill site located in a mature submarket with significant growing, unfulfilled demand for middle class housing."

Century Bridge President, Wei Deng, commented, "This is our second joint venture with Jingrui Holdings, who has been an extremely effective and collaborative developer on our Wuxi project which we announced in May of 2014. Jingrui shares Century Bridge's growth strategy and investment philosophy which, in combination with their focus on projects in Tier 2 and 3 cities, has made our relationship mutually beneficial. A key component of Century Bridge's strategy is the development of long-term relationships with our local partners. Consequently, our second joint venture with Jingrui was a natural evolution of our relationship. In addition, as a Hong-Kong listed national developer with more than 20 years' experience, their history of success and level of expertise has made them and we believe will continue to make them an ideal partner for us."

KEY FACTS

Ningbo – Ningbo is an industrialized city with an extensive private sector operating in industries such as textiles, plastics and molding. Serving these industries, the Port of Ningbo has grown over the years and is currently the fifth busiest port in the world by shipping tonnage. GDP has grown 8.1% annually according to National Bureau of Statistics ("NBS").
Established in-fill location – The project is Phase III of a successful ongoing project and the project will benefit from existing project resources including, an existing sales center and model units, utilizing the existing sales team and building on an already substantial potential customer list.
Amenities and transportation – Nearby subway and bus transportation provide quick access to the Ningbo Southern Business District (SBD) the city's prime commercial area. Two kilometers north and a five minute drive from the Project is the newly opened Yintai Plaza shopping mall with more than 170,000 square meters of retail comprising over 200 stores and an adjacent 130,000 square meters of hotel and office space. A full range of high quality educational and medical facilities are also within a three kilometer radius of the Project.
Personal Income Growth – Average per capita disposable income has grown at an annual rate of 10% reaching RMB 44,155 in 2014. During the same period, housing prices have increased at a slower rate of 3.4% resulting in improved housing affordability (NBS).
Joint Venture Partner – The project is being developed by a joint venture of Century Bridge and Jingrui Holdings.
Development – The $122 million project includes above ground gross buildable area of 90,204 square meters/970,256 square feet on a site of 45,102 square meters/485,478 square feet.
Residential – Will comprise approximately 87,854 square meters/945,660 square feet (approximately 840 units).

With 100 million people expected to relocate to China's cities by 2020, China's ongoing urbanization and infrastructure needs will continue to drive growth in the Tier 2 and 3 cities. Century Bridge Capital believes that this dynamic bodes well for continuing stability and investment opportunity in middle-class housing in solid submarkets within China's Tier 2 and 3 cities.

Century Bridge Capital is a private equity firm with offices in Dallas, Texas and Beijing, China. The firm is focused exclusively on investment in the middle-income, residential real estate sector in China's growing Tier 2 and 3 cities.

www.centurybridge.com