Offshore lenders wary of office sector

With China's office rental yields averaging only 10%, foreign investors could shy away from the segment, the South China Morning Post reported. Hypo Real Estate Bank International, which recently backed China Vanke on a residential development, called the mainland's office market �immature�. Faced with Beijing's lending curbs, developers have been actively seeking out foreign lenders, one example being Shanghai Forte Land recent tie-up with ING Real Estate Investment and Morgan Stanley Real Estate on separate residential projects. But residential projects are considered more attractive because flat sales typically deliver comparatively high profits quickly.