Century Bridge Announces $87 Million China Residential Development

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$25 Million Investment in 1,419 Unit Joint Venture Project Adds to China Portfolio

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Jan 12, 2015, 07:00 ET

BEIJING and DALLAS, Jan. 12, 2015 /PRNewswire/ -- Century Bridge Capital announced today that it has invested $25 million in a joint venture real estate development for a middle-income, residential project in Dalian, China. The investment follows previously announced joint venture residential investments in Wuhan, Hangzhou, Wuxi and Zhongshan, China on behalf of Century Bridge China Real Estate Fund, L.P.

Commenting on the investment Century Bridge CEO, Tom Delatour, noted, "The investment 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. It is in an in-fill site located in a mature submarket with significant unfulfilled demand for middle class housing. Like all the markets we target, Dalian is experiencing increasing levels of affordability, with annual disposable income growth exceeding home price growth."

Century Bridge President, Wei Deng, commented, "Our development partner, Dalian Guanxin Investment Corporation, has already developed two projects in Dalian, making them ideal partners for Century Bridge in the Dalian development project. Our China-based team looks forward to working with the Dalian Guanxin project team as we move forward on this development."

KEY FACTS

Dalian – Located on the southernmost tip of the Liaoning Peninsula, Dalian is well positioned as a gateway city to South Korea, Japan, and Russia and benefits from a diverse economy including petrochemicals, automobiles, shipbuilding, IT, chemical engineering and pharmaceuticals.
Established in-fill Location – The project is located in Dalian's Economic Development and Technological Zone, the Dalian Development Area, at the core of the Jinzhou New District, which has the highest GDP of all the districts in Liaoning province. As an established location for over 3,500 international companies the district has experienced significant job growth, thereby attracting residential buyers to the area.
Amenities and transportation – Offices and industrial complexes are within a ten-minute walk while subway and bus transportation provide quick access to downtown Dalian. Nearby high schools, primary schools and hospitals have already attracted people from other districts while substantial retail developments also serve the area.
Personal Income Growth – Average per capita disposable income has grown at an annual rate of nearly 8.0% from RMB 19,014 at the end of 2009 to RMB 30,238 at the end of 2013, with an upward growth rate of 9.8% during 2013. During the same period, housing prices have increased at a slower rate of 5.6% resulting in improved housing affordability.
Joint Venture Partner – The project is being developed by a joint venture of Century Bridge and Dalian Guanxin Investment Corporation.
Development – The $87.2 million project includes above ground gross buildable area of 68,904 square meters/741,683 square feet on a site of 12,160 square meters/130,890 square feet.
Residential – Will comprise approximately 64,516 square meters/694,450 square feet (approximately 1,419 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 Beijing, China and Dallas, Texas. The firm is focused exclusively on investment in the middle-income, residential real estate sector in China's growing Tier 2 and 3 cities. Its China-focused private equity real estate fund, Century Bridge China Real Estate Fund, L.P., has over $170 million of total committed capital from ten global institutions.

www.centurybridge.com