Business | Property
Global to invest $11m in $62m China project
Kuwait's Global Investment House said it is investing $11 million in a Chinese property project through its Asia-focused real estate fund.
- Staff Report
- Published: 23:13 December 25, 2007
Dubai: Kuwait's Global Investment House said it is investing $11 million in a Chinese property project through its Asia-focused real estate fund.
Rakesh Patnaik, head of real estate funds at Global, said the total cost of the project is $62 million.
The Kuwaiti firm is partnering with a Chinese real estate development and construction company.
The mixed-use project comprising residential and retail space is located in Changzhou city.
Last month, Global's Asia Real Estate Fund had made two investments in China and India.
Sameer Al Gharaballi, executive vice-president at Global, said the decision to invest in Changzhou "relates to the fact that in recent years, there has been a strong demand in the real estate sector, especially in the residential segment."
With this equity investment, the fund aims to have a strategic stake of 49 per cent in the project.
More deals
The fund is in the process of conducting due diligence of two more transactions situated in India and South Korea.
Helen Wong, chief executive officer of Cushman & Wakefield Capital Asia, the fund's advisor, said that the fund will benefit from the sale strategy of the residential and retail units.
Global said the pre-sales of these units is expected to start soon with complete exit through retail sales by 2010 and expected returns to exceed 25 per cent on a gross basis.
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