Chinese Buyers Targeting Funds

A growing number of Chinese-based investors are beginning to target real estate funds - switching their attention from domestic urban residential investments to strategic assets in advanced economies, IPE reports....

A growing number of Chinese-based investors are beginning to target real estate funds - switching their attention from domestic urban residential investments to strategic assets in advanced economies, IPE reports.

Data released by research firm Real Capital Analytics has found that many buyers are now focusing their investments in more established real estate firms with solid track records.

This, the organisation claims, is a direct result of the implementation of further government restrictions in the Chinese domestic market, which had previously been a major target for domestic investors.

And the potential to achieve higher yields overseas has led to a number of government-backed investors limiting direct acquisitions in favour of fund investments.

To this end, Real Capital Analytics explained that direct investment activity has been limited to a handful of properties over the past year. In contrast, state-controlled investors have been looking to expand their portfolios in the US and London, IPE said.

- Wednesday 08 December 2010

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