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TAIYUAN, CHINA-Continuing a strategy to construct residential projects throughout Mainland China, Asian development firm Guangzhou R&F Properties has secured a 275-acre land parcel here in the capital of Shanxi Province. The site, which can yield 22 million sf of development, was purchased for $89.9 million.

In July, Guangzhou R&F acquired a 232-acre parcel in the Chinese City of Tianjin on which another large residential complex is being planned. Headquartered in the city of Guangzhou, the firm has been active in China's CRE market since 1994, and is a leading contributor to the prolific wave of multifamily development occurring throughout its homeland. The company owns 68 properties, having completed multifamily projects in Beijing, Chongqing and Xi'an. Guangzhou R&F now owns 5,000 acres of land reserves for residential throughout Mainland China and has multifamily ventures under way in excess of 42 million sf, the firm estimates.

Although China's private property industry remains in its infancy, foreign capital is clamoring for investment opportunities, especially for newer product. Despite the ardor, a new report by Jones Lang LaSalle indicates that multifamily product in China will be on the lower end of the earnings chart through the end of the decade when compared to other Asian investments. Whereas certain classes are expected to garner annualized returns exceeding 25%, the residential property sector in Beijing is the only one that will provide double-digit returns, according to JLL. Beijing residential ranked 17th out of 25 areas in the report, and barely exceeded the 10% return threshold. Shanghai residential was next to last, offering a forecasted return of just 5%. Only Hong Kong residential at 1% was worst in the JLL assessment.