[For Immediate Release]

//

China New Town launches first Public-Private-Partnership (PPP)
Project in Water Engineering

To secure stable and profitable quarterly returns

(Hong Kong and Singapore, 10 July 2015) ― China New Town Development Company Limited - the future blueprint planner and leading developer of integrated new towns in China (the "Company", "CNTD", the "Group"; HKSE: 1278.HK; SGX: D4N.SI), is pleased to announce that the Company has entered into a Public-Private-Partnership ("PPP") cooperative investment agreement (the "Agreement") with Danyang Investment Group Company Limited ("Danyang Investment") and Jiangsu Municipal Development Company Limited ("Danyang Municipal"). The Company agrees to contribute in aggregate additional capital of RMB 200 million in form of registered capital to Danyang Tiansheng New Town Development and Investment Company Limited (the "Project Company") through its designated wholly-owned subsidiaries. Pursuant to the Agreement, the Company will undertake the development and operation of the Danyang Water Engineering Project (the "Project") as the private sector investors, and enjoyed a guaranteed 13% annualized return quarterly during the construction period for the first two years of the Project. At the end of the development period, Danyang Investment commits to fully purchase at par the equity stake in the Project Company held by the Company. preset return rate.

The Project's total investment shall amount to about RMB1.6 billion. On top of the enlarged share registered capital of RMB546 million, the Project Company shall be strengthened by a dedicated project financing from CDB amounting to no less than RMB1.12 billion. The cooperation period of the Project spans over 15 years, among which the development period with CNTD's participation spans over 2 years and the maintenance period lasts for additional 13 years.

The PPP model is an emerging investment-financing model for local government, a key initiative under the support of national policy. The Ministry of Finance and National Reform and Development Commission consecutively published policy guidelines in support of the PPP model, while leading financial institutions, especially China Development Bank, provided solid financing packages in support. Specifically in the Project, the Danyang Government has agreed to support the Project as municipal priority project by adopting the PPP model, ensuring that the cash outlay in relation to investment gains and equity interest purchase arrangements are included into the annual fiscal budget and mid-term fiscal planning of the Municipal Finance Bureau. This effectively guarantees China New Town's investment in the Project enjoys fixed investment return during the development period and smoothly guaranteed for safe exit upon the end of such period. The investment therefore represents extremely high safety, and is crucial for the Company to greatly enhance the investment return on such projects through appropriate use of financial gearing.

Located at the greater Shanghai econonmic corridor of the Yangtze River Delta, Danyang is among the most rapidly growing and fiscally sound economies in the Jiangsu Province. The choice of CDB Jiangsu Branch and CDB Capital, through the Company, for Danyang as the first ever PPP project location is due to its economic vibrancy and solid safety, positioning it as a sustainable model to widely replicate in future projects.

The Project is highly consistent with the Company's strategies in exploring investment opportunities in the field of urbanization development. Water conservancy project is crucial for improving the citizen's living environment and promote regional economic activities, as well as improving municipal greenery and water environment. It is therefore a core segment of new-type urbanization development, evidently from the Danyang Government attributing high priority to the Project and introducing private sector capital with guaranteed return in support.

Most importantly, the Project's investment well demonstrates the synergies between the Company's equity investment business and CDB's lending business in the field of urbanization. In the Project, CDB's lending shall contribute up to nearly 70% of the Project's total investment amount, and committed for long term, ensuring the Project has sufficient development funding for success. On the backdrop of PPP model securing natiowide support, we expect to closely liaise with CDB's nationwide branch network to replicate the PPP model to a series of strategically attractive locations in Jiangsu Province and ultimately across the entire country. In addition to rapidly expanding the Company's project portfolio and economy of scale, it is beneficially for the Company's exposure to core urbanization segment and profitable investment and operational business opportunities and strengthening its leadership position in China's urbanization.

Commenting on the launch of the Company's first ever PPP project, the spokesperson of China New Town Development says, "This Project is another solid proof showing our controlling shareholder's full support to the business development of the Company. CDB does not only leverage its unparalleled financing capacity to support the Project, but also opens its quality project resources to the Company, so that the Company is able to participate in such a lucrative and regional priority project. We believe that capturing the quality project resources which CDB opens to the Company will significantly reduce the investment risks and substantially enhance the investment return of the Group, with a view towards greater values for our shareholders."

-END-

About China New Town Development Co. Ltd.
(HKSE: 1278.HK; SGX: D4N.SI)

With its new town development founded in 2002, China New Town Development Co. Ltd. was first listed on the SGX in 2007 and dual listed on HKSE in 2010. It is a company dedicated to planning and developing new town projects in the PRC. Its actual controlling shareholder is China Development Bank Capital Corporation Ltd. ("CDB Capital "). CDB Capital is a wholly owned subsidiary of China Development Bank. Its establishment was approved by the State Council. With a registered capital of RMB 50.9 billion, CDB Capital is a unique integrated investment platform covering both domestic and offshore markets. Its investments cover areas the strategic new model township developments, overseas investments, and funds. Integrated new model township development is one of the core businesses of CDB Capital. Through its unique business model, the Company forms joint ventures with local governments to develop new town projects, and participate in the full range of activities including master planning, resident relocation and resettlement, land clearing and preparation, construction of infrastructure and high quality ancillary facilities. It also introduces quality brands and leading real estate developers into the new towns it operates to enhance the long term value of the town and its land resources. It then shares part of the value enhancement upon land sales. Starting from 2002, the Company has been engaged in the development of Shanghai Luodian New Town, Wuxi Hongshan New Town and Shenyang Lixiang New Town. Among them, the Luodian New Town has entered maturity phase and received international and domestic recognition for its innovative new town design and execution. The Luodian New Town was granted the prestigious status of "United Nations Development Program Pilot Town" by the United Nations Development Program and "National Development and Reform Pilot Small Town" by the National Development and Reform Commission (NDRC). Recently, it was awarded the "EU Small Town Union - Representative Member from Asian Pacific".

Enquiry