China New Town Development Co. Ltd. non-wholly owned subsidiary Shanghai Golden Luodian Development Co. Ltd. signed a new cooperation agreement with the People's Government of Luodian Town, Baoshan District, Shanghai.

The company had first agreed to work with an affiliate of the local government in 2002 on the Luodian New Town Project followed by a supplemental agreement in 2010.

The original agreements were slated to expire in August 2017, and the company has since been in negotiations to continue the cooperation agreement under a new revenue model based on the Chinese government's new land policies.

The new agreement's term will be from Aug. 21, 2017, to Aug. 20, 2023, and the company will work to hand over outstanding construction works and municipal infrastructure and public facilities in the project's western zone.

The local government has agreed to reimburse Shanghai Golden in the amount of roughly 1.52 billion yuan as fees for the demolition and relocation works in the project's eastern zone.

Under the original agreement, the company was entitled to a portion of the sale proceeds, and under the new agreement it will be entitled to a management fee to be determined by a separate agreement.

As of Dec. 28, US$1 was equivalent to 6.88 Chinese yuan.