International real estate service provider Jones Lang LaSalle said in a recent report that some international groups have raised substantial capital for China property funds and are now deploying the money, while others are moving capital from less vibrant markets in North America and Europe.
Blackstone, one of the largest US private equities, in June acquired a commercial project in Shanghai for RMB1.1 billion ($160.24 million), the first time the company invested in China’s property market. Other international funds, said industry insiders, are also looking for mature properties in key cities.
Malcolm Tam Yuk-cheung, a financial advisory leader at Deloitte China Real Estate Industry said, ‘We have received lots of inquiries from investors in the United States and Europe interested in investing on the mainland following a downward adjustment in property prices. They are looking both at opportunities to acquire a stake in a property company and to directly invest in projects.’
Due to the credit crunch, industry experts say, mergers and acquisitions in China’s real estate market are expected to reach a five-year high this year. More on this HERE.
Source: China Daily
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