Initiates Joint Venture Relationship with Hong Kong Listed Redsun Real Estate
BEIJING and DALLAS, April 7, 2020 /PRNewswire/ -- Century Bridge Capital announced today that it has invested in a middle-income, residential project in Huzhou, China. The project will be jointly developed with Redsun Real Estate, a Hong Kong listed developer based in Nanjing.
Huzhou is a prefecture city in the northern Zhejiang Province in the Yangtze River Delta. It is known as the "City of Silk" in China and is an important manufacturing area for the region. As a pilot city in China's strategic plan, "Made in China 2025", Huzhou's manufacturing sector is well developed with prosperous industries including traditional as well as high-tech and emerging industries. Government support has attracted investments from high-tech companies such as Huawei.
Commenting on the investment, Century Bridge CEO, Tom Delatour, noted, "The Huzhou opportunity allows us to invest in the first phase of a planned two-phase project. The first phase consists of 377 low rise units and 57 townhouses, along with 350 underground parking units as well as a kindergarten facility with 15 classrooms. The project is located in the Renhuang Mountain Area which is part of the central urban district. The government has supported development in the area since moving their offices there in 2016 and it is considered the most livable region in Huzhou with premium educational sources and attractive natural surroundings."
With respect to the market Mr. Delatour added, "Units representing 40% of the total residential being developed have already been sold. In addition, there is limited local land supply and much of the existing inventory in the market has been absorbed. Consequently, we believe that the location, quality, and amenities of the project combined with the increasing affordability of housing in Huzhou will drive strong sales velocity over the balance of 2020."
Noting the strength of Redsun Real Estate as a joint venture partner, Century Bridge President, Wei Deng, commented, "Century Bridge is pleased to invest with Redsun Real Estate, a leading Hong Kong listed developer with an established presence in the Yangtze River Delta Region as well as recognized development expertise and industry status. We are confident that we will benefit from Redsun's knowledge of the region as we work together in completing and marketing the Huzhou development. Our China-based team looks forward to working with and building our relationship with the Redsun Real Estate development and sales team."
Huzhou Investment - KEY FACTS
- Huzhou is located in northern Zhejiang Province in the Yangtze River Delta Region. For the five-year period ending in 2018 Huzhou GDP grew at a cumulative average rate of 8.2%. In 2018 overall GDP in Huzhou grew at an annual rate of 8.1%, higher than the national growth rate of 6.6%.
- Residential demand drivers – Huzhou's growing economy in conjunction with rising local household income, less rapid house price growth and the resulting increased affordability will continue to attract local buyers as well as buyers from neighboring cities. In addition, Huzhou's economy benefits from strong manufacturing industries and rapid development in tourism.
- Location - The project is in the Renhuang Mountain Area where the Huzhou government is located. The area is currently the administration center in Huzhou and has a number of recently built cultural and recreational amenities including the Huzhou Olympics Sports Center, the Huzhou Central Library, and the Huzhou Museum.
- Amenities and Transportation – In addition to the Sports Center, Library, and Museum, the best primary and middle schools in Huzhou are nearby. The Renhuang Mountain Area is also an important tourism resort with mountain views and public parks and gardens. Five expressways connect Huzhou to cities including Hangzhou, Nanjing, Ningbo and Beijing. Two high speed railways are scheduled for completion in 2020, one of which will connect to Suzhou and Shanghai and the second to cities in Henan province.
- Personal Income Growth/Affordability – From 2013 to 2018 disposable income per capita grew at a cumulative annual growth rate of 8.5%. Currently the price-to-income ratio for a typical home for a family of three is only 5.6, lower than most cities in China. Government support for housing costs for government personnel makes housing much more affordable for these groups which in turn has added to current and longer-term strong housing demand.
- Joint Venture Partner – The project is being developed by a joint venture of Century Bridge and Redsun Real Estate, a leading developer with 20 years experience and a recognized brand in the region where they have an established sales and development team in Huzhou.
- Development – The $131 million project includes above-ground, gross buildable area of 64,831 square meters/697,842 square feet on 48,652 square meters/523,690 square feet.
- Residential – Will comprise approximately 58,259 square meters/627,099 square feet, which will be developed into 377 low-rise units and 57 townhouse units, representing approximately 90% of above ground, gross buildable area and 350 underground parking units as well as a kindergarten facility with 15 classrooms.
Century Bridge 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.
SOURCE Century Bridge Capital