(To read more on the multifamily market, click here, and for more retail coverage, click GlobeSt.com/RETAIL.)
BEIJING-Rreef, the real estate investment management arm of Deutsche Bank, has made its first foray into China's property market with a $225-million investment in a large residential project in Zhuhai, China. The fund plans to develop a residential development on a 1.1-million-sf parcel in Zhuhai over the next three years The project, which will be called 'Zhongzhu Uptown,' will comprise 2,000 apartments in roughly 20 towers and a small number of retail units.
Rreef has teamed up with joint venture partners New Genesis International, a Macanese investor, and Chinese co-investors Zhuhai Zhong Zhu Stock, a Zhuhai property developer, and its sister company Xihai Group. Genesis and Zhongzhu have already undertaken a residential project together in Zhuhai.Rreef has a 50% interest in the project while New Genesis has a 25% share, and Zhongzhu and Xihai have a 20% and 5% share respectively. Zhongzhu has been appointed project manager.
Zhuhai is a coastal city located in the Pearl River Delta region in southern China, near Macau. The Pearl River Delta region is one of the country's fastest growing economic and manufacturing centers with a population of around 50 million people.
"China is a particularly attractive emerging real estate market given the pace of growth of its economy," says Kurt Roeloffs, Rreef's Asia Pacific head. "Rreef has been actively looking for the right entry opportunity to China for some time. We like the middle-income residential sector where we believe there is strong demand and a structural shortage of supply. Our project is located in one of China's fastest growing economic centers and we are developing the project with experienced local partners. Continued strong economic growth and positive structural changes, coupled with a relative shortage of types of quality real estate means the medium- to long-term prospects for real estate market fundamentals in China remain very good."
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