Two real estate funds will raise a combined US$1.7 billion to invest in the mainland property market, saying that prices had dropped to a "realistic level," the South China Morning Post reported. Kenneth Gaw, president of Gaw Capital Partners Hong Kong, said his firm would raise US$950 million to invest in prime properties and distressed assets in first-tier cities. He added that the mainland property market would recover in the next 12 to 18 months and that now was a good time to invest. Meanwhile, ING Real Estate is raising funds for its second China Opportunity Fund. Richard Van den Berg, managing director of ING Real Estate Investment Management (Hong Kong), said the firm hoped to attract US$750 million, though he admitted now is a "challenging" time for fund-raising.