Century Bridge exits USD178m China residential project
Century Bridge Capitalhas successfully exited and repatriated the proceeds from its joint venture investment in Renhuai, China.
Century Bridge closed on its investment in the USD178 million, middle-income residential project in September 2018. The joint venture encompassed the final three residential phases of an established existing project in Renhuai, China. Century Bridge has also invested in a USD77 million middle-income, residential project in Xishui, China. Both investments are joint ventures with Guizhou Chuangmeng Real Estate.
Renhuai is a county level city in the Guizhou Province and is known as “the city of Baijiu” in China for being home to the world’s most valuable liquor brand – Kweichow Moutai. Xishui is located 67 kilometers away from Renhuai. According to an article published in The Economist earlier this year, Baijiu is the most consumed spirit in the world as a result of its popularity in China, with drinkers spending approximately three times more each year on baijiu than they do on beer and roughly 15 times more than on wine.
Century Bridge CEO, Tom Delatour, says: “The Renhuai opportunity allowed us to invest in a project supported by a strong local industry and establish our relationship with Guizhou Chuangmeng. The Xishui investment represented the opportunity to build on that relationship with our investment in the first phase of a planned three phase project consisting of thirteen high-rise buildings of 950 residential units, supporting retail, and 1,302 underground parking spaces.” The first group of 242 units from the first four buildings commenced presales in early July 2019.
Century Bridge President, Wei Deng, adds: “Our successful exit from the Renhuai investment in less than one year demonstrates the continuing value that comes from our on-the-ground presence in China and our understanding of the strength of the local economies that support demand for our investments. Based on the success of the Renhuai project and the collaborative relationship we have developed with Guizhou Chuangmeng, we are confident that we will also benefit from their intimate knowledge of the region as we work together in developing and marketing the Xishui project.”