Carlyle Group eyes China commercial property market

Global private equity firm Carlyle Group (CG.NASDAQ) is looking to enter the China commercial property market after asset and share acquisition discussions with Vanke (2202.HKG, 000002.SHE), Reuters reported, citing a Thursday statement by Vanke. The deal would give Carlyle access to China’s commercial real estate market, where properties carry yields of around 4.5 to 6%. Rental margins of commercial properties are at around 60-80%, higher than the 30-50% of residential projects. Vanke, China’s biggest property developer, would also benefit from the deal, which would help it quickly generate returns as a slump in the residential market, and a slowing economy, tightens liquidity for Chinese developers.