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(29 December 2015 – Hong Kong) New World Development Company Limited (“NWD” or “New World Group”; Hong Kong Stock Code: 00017) and New World China Land Limited (“NWCL” or “The Group”; Hong Kong Stock Code: 00917) today jointly announced that they have entered into agreements with a wholly-owned subsidiary of Evergrande Real Estate Group Limited (“Evergrande”, Hong Kong Stock Code: 03333) in which Evergrande has conditionally agreed to purchase the attributable interest and loan of Guiyang Jinyang Sunny Town (100%) and Chengdu New World Riverside (60%) for an aggregate consideration of approximately RMB7,300 million. The transaction will be completed on 18 February 2016. The total cash considerations for Guiyang project and Chengdu project amount to RMB5,300 million and RMB2,000 million respectively. Deposit of the Guiyang and Chengdu considerations, which amounts to RMB1,100 million and RMB400 million respectively are both payable on 6 January 2016. 

The disposals enable NWD and NWCL to realise cash resources and unlock the value in their investment in the property projects and focus more resources in first-tier and 1.5-tier cities and mid-sized property projects, optimising its property development and investment portfolio strategy. The net proceeds to be received will be applied towards the working capital and investment requirements of NWD and NWCL as appropriate.