[photopress:Huaihai_Rd__Luwan_district.gif,full,alignright]The previous post ‘Realty lures foreign funds’ reveals growing foreign investment in China’s property market. Here are a couple of examples of such investments, cited from an article in the China Daily.
Morgan Stanley has purchased a 24,000 square meter site in central Luwan district in Shanghai (pictured is Huaihai Road in Luwan district). According to Shanghai Securities News, the project will develop office space worth US$166.67 million.
Warburg Pincus, a U.S private equity firm, purchased a 25% stake in Shanghai Zhongkai Real Estate Development and Managment Co for US$30 million on January 30.
Last year, a total of US$8.23 billion of foreign investment was injected into China’s property market, up 51.9% year-on-year.
According to a report from CB Richard Ellis, investment in office building yields 8% in Beijing and Shanghai, compared to 7% in New York, Chicago and Toronto, and 4%-5% in Paris, Sydney and Hong Kong.
Source: Xinhua and WATAsia Research