[photopress:property_Richard_van_den_Bergh.jpg,full,alignright]ING Real Estate, a unit of Dutch financial group ING, which has around $200 billion under management globally, is currently marketing a fund for China, which it hopes will bring in $750 million, mostly for building housing. Part of the plan is it expects troubled landlords and developers to offload bargain properties.
Many developers, struggling with a clampdown on bank lending and a dismal market for initial public offerings, lack the cash to finish projects and are expected to offload land and unfinished buildings.
ING, which already runs a $500 million fund in China, plans to continue working on projects with Chinese developers Shanghai Forte Land , Gemdale and Longfor, which wants to launch a Hong Kong initial public offering in the next three months.
Richard van den Berg, head of China for ING Real Estate, said, ‘You don’t turn the tables on your partners when the market turns in your favor.’
The China fund will target internal rates of return (IRR) of over 20%.