[photopress:Xintiandi_1.jpg,full,alignright]Shama, a Hong Kong-based serviced apartment owner and operator controlled by the Morgan Stanley Real Estate Fund has said it is entering the mainland market with four deals over the next two years.
The company’s first managed property on the mainland will be a 31-story tower with 100 apartments in Xintiandi owned by the Gateway Fund.
The fund, which is managed by real estate investment firm Gateway Capital from the Middle East, bought the tower for about RMB600 million ($75 million) earlier this year from its developer Shui On Group. The building, part of Shui On’s Lakeville Regency complex, will be operational under the Shama Luxe brand at the beginning of next year.
Starting rents will range from $3,400 a month for a one-bedroom flat to $7,500 a month for a three-bedroom suite; approximately $1.25 per square meter a day.
The other three deals, two in Shanghai owned by Morgan Stanley and one in Beijing that is also owned by the Gateway Fund will open their doors after the second quarter of next year.
It seems possible that these will be the Lujiazui Central Apartment in Pudong and Chateau Pinnacle in the former French concession area that Morgan Stanley purchased earlier this year.
In April, Morgan Stanley Real Estate Fund acquired an undisclosed majority stake in Shama from Macquarie Real Estate Asia-advised Schroder Asian Properties Fund.
Zain Fancy, executive director and head of Morgan Stanley Real Estate in Asia Pacific, said, ‘Asia’s serviced apartment sector is highly fragmented. MSREF and Shama will look to build a strong regional serviced apartment brand focusing on gateway cities in Asia, especially in China.’
Source: China Daily