[photopress:RREEF_logo.jpg,full,alignright]RREEF, the world’s biggest property fund, is stepping up its exposure to China, saying on Tuesday it was in talks to invest a combined US$100 million in two residential projects.
The real estate and infrastructure arm of Deutsche Bank is also looking at investment opportunities in China’s office, retail and logistics property sectors. Kurt Roeloffs, managing director of RREEF Asia Pacific, told a news conference, ‘We are actively looking at all of the large cities in China. It’s likely we’ll have more deals this year.’
RREEF, which manages RMB573 billion euros ($73.82 billion) globally, committed about US$100 million to a housing project in the city of Zhuhai last year, and the residential projects it is now targetting are also in southern China.
The firm will also invest $300 million to $500 million over the next five years in a hotel venture with private equity firm H&Q Asia to build a 5,000-room hotel chain to be managed by Hilton Hotels.
Kurt Roeloffs, managing director of RREEF Asia Pacific, pointed out China is now the world’s fourth largest economy and is expected to surpass Japan to become second by 2015. Its urban population, over 40 percent of the total, is already bigger than that of North America and India, and growing by around 8 million a year.
Kurt Roeloffs said, ‘Demand drives are strong. In the mid-term, the outlook is positive.’
Source: Reuters
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