Tom Delatour: Long on Real Estate Investment in China’s Tier II Cities

In this episode of China Money Podcast, guest Tom Delatour, CEO and co-founder of Beijing-based Century Bridge Capital, discusses the opportunities in investing in China’s residential real estate in its second-tier cities. Listen to the full interview in the audio podcast, watch an abbreviated video version, or read an interview excerpt. Q: First give us a brief introduction of Central Bridge Capital? A: We are Beijing-based and focus on investing in China’s tier two cities with regional developers to build …

Michael Shaoul: We Are Shorting Chinese H Shares; China’s Property Slide Is Just Beginning

In this episode of China Money Podcast, guest Michael Shaoul, chairman of Marketfield Asset Management, expresses his bearish views on the Chinese economy and expects the current economic slowdown to last until the end of this year, in stark contrast to the consensus view that the economy will pick up speed during the second half of 2012. Q: First quarter GDP in China was 8.1 percent, lower than market expectations of 8.3 percent. Do you see the Chinese economy continue …

State Street Opens Office In Shanghai

Boston-based investment management firm State Street Corporation says it will open a new office in Shanghai under its Alternative Investment Solutions (AIS) business, which focuses on real estate and private equity, according to a company announcement.

Subsidiary Of Venture-Backed E-House Plans $200M IPO

Shanghai-based real estate services company E-House (China) Holdings Limited says its wholly owned subsidiary, Leju Holdings Limited, is planning to raise as much as US$150 million in an IPO. Leju Holdings has submitted a draft registration to the U.S. Securities and Exchange Commission to sell shares to the public on the New York Stock Exchange, according to a company announcement.

Gaw Capital Acquires Beijing’s Pacific Century Place For $928M

Hong Kong-based private equity real estate firm Gaw Capital Partners (listen and watch Gaw Capital’s founder Goodwin Gaw talking to China Money Podcast here) says that it has signed a conditional agreement to acquire a Beijing commercial property project called Pacific Century Place, for a total of US$928 million, according to a company statement.

Gaw Capital, CITIC Are Asia’s Most Consistent Performing Real Estate Funds

Three Asia-based private real estate fund managers, Hong Kong-based Gaw Capital Partners and CITIC Capital, as well as India’s HDGC Property Ventures, are the most consistent performing firms in the region, based on a new ranking compiled by research firm Preqin. Using quartile rankings based on both the return multiple and internal rate of return (IRR), Preqin identified those private real estate managers who achieved the most consistent returns over the years.

Gaw Capital Leads Deal Acquiring London’s Exchange Tower

The real estate investment arm of U.S. asset management firm BlackRock Inc. has completed the sale of a high-rise office building in London to a group of Asian investors led by Hong Kong-based private equity real estate firm Gaw Capital Partners for £191million (US$310 million), according to a company announcement. Click here to see Gaw Capital’s founder Goodwin Gaw on China Money Podcast Gaw Capital acts as the adviser and co-investor in this deal for a pool of Asian investors …

Lone Star Appoints Mark Newman As Head Of Asian Real Estate

Global private equity firm Lone Star Funds has appointed Mark H Newman as its head of real estate investment in Asia, according to media reports. Newman is formerly global co-head and chief investment officer for Lehman Brothers’ real estate private equity business. Most recently, he has been managing independent investment manager Broadcliff Capital Partners in London.

Asian Buyers Set For Historic Year of Buying US Multifamily Properties

Asian investors are on track to spend more on U.S. multifamily assets in 2014 than at any other point in history, according to the latest research from global property consultancy CBRE. U.S. multifamily has seen a significant increase in investment volumes by Asian buyers so far in 2014, with US$522 million of transactions completed from January through August. The number has already surpassed the full year total of US$356 million for 2012 by a considerable margin, and is close to …

TPG Capital, PAG Complete $1.1B DTZ Buyout

Chicago-headquartered property services firm DTZ says it has completed a US$1.1 billion sale to an investor consortium composed of TPG Capital, Hong Kong-based private equity firm PAG Asia Capital and Ontario Teachers’ Pension Plan (OTPP), according to a company announcement. The investor consortium bought DTZ from Sydney-based UGL, which sold DTZ to focus on its core engineering and industrial businesses. The deal was first announced in June. DTZ will continue to operate under the DTZ brand. Brett White, former chief …

Macquarie Raises $1.1B For First Asian Infrastructure Fund

Macquarie Funds Group, the fund management division under Mcquarie Group, has held a US$1.1 billion first close for its first pan-Asian infrastructure fund, according to media reports. Macquarie Infrastructure and Real Assets, the alternative asset management arm under Macquarie Funds Group, launched the fund earlier this year with a US$2.5 billion target.

Greenland Breaks Ground For Brooklyn Property Project

A property project in Brooklyn, New York, co-developed by Shanghai-based Chinese property developer Greenland Group Co., has held a ground-breaking ceremony for one of its new residential buildings, according to a statement posted on the city government’s website. Last October, Greenland agreed to partner with New York-based real estate firm Forest City Ratner Companies to establish a joint venture to develop Pacific Park Brooklyn, formerly named Atlantic Yards, in Brooklyn, New York.

TPG Capital, PAG Completes Buyout Of Cassidy Turley

An investor consortium composed of TPG Capital, Hong Kong-based private equity firm PAG Asia Capital and Ontario Teachers’ Pension Plan (OTPP) has completed the buyout of U.S. commercial real estate services provider Cassidy Turley, according to a company announcement. Deal terms were not disclosed. Cassidy Turley has also been merged with Chicago-headquartered property services firm DTZ, which was acquired by the same investor consortium in November 2014. The acquisition of Cassidy Turley was initially announced in September 2014. The two …

CPPIB Partners With Longfor Properties To Develop Suzhou Project

Canada Pension Plan Investment Board (CPPIB) and Chinese property firm Longfor Properties Co., Ltd. have formed a new joint venture to develop a major mixed-use development project in Suzhou, Jiangsu province, according to a joint announcement. The new joint venture was formed on December 23, 2014, with CPPIB committing RMB1.25 billion (US$201.5 million) to jointly develop the Times Paradise Walk project in Suzhou, the fifth most affluent city in China with a population of 10 million.

SC Capital Raises $850M New Real Estate Fund

Singapore-based real estate private investment firm SC Capital Partners has reached final closing of its fourth real estate private equity fund, Real Estate Capital Asia Partners IV L.P., raising a total of US$850 million equity commitments, according to a company announcement. The fund held its final closing on December 5, 2014, just three months following its first closing. It raised capital from 34 globe public and private pension funds, funds of funds, endowments, asset managers, private foundations, family offices and …

Gaw Capital Advises Ping An On Acquisition of London Office Building

Hong Kong-based real estate private equity firm Gaw Capital Partners has acquired London’s Tower Place on behalf of Ping An Insurance Company of China, Ltd., according to an emailed statement. No deal terms were disclosed. This is the second property acquired by Gaw Capital for Ping An Insurance, following the acquisition of Lloyd’s building in London’s financial district in July 2013. In addition to leading the acquisition process, Gaw Capital is also providing debt financing advising with this transaction.

Dalian Wanda To Acquire Sydney Property From Blackstone For $329M

Chinese conglomerate Dalian Wanda Group has agreed to acquire a property building located in Sydney’s central business district from Blackstone Real Estate Partners for approximately A$415 million (US$329 million), according to a company announcement. Dalian Wanda is to purchase the Gold Fields House from Australian real estate investment firm, Valad Property Group. In 2011, Blackstone Real Estate Partners VI acquired Valad in a go-private deal in its first major real estate investment in Australia.

Chinese Property Firms Go After Prime Assets In Malaysia

Chinese property firms are the leading contenders in the bid to purchase the French Embassy in Kuala Lumpur, the capital of Malaysia, amid increasing investments by Chinese developers to push into places outside of their home market. The French Embassy in Kuala Lumpur, located along Jalan Ampang in the city’s Golden Triangle, has been put up for sale after the French government decided to streamline its diplomatic network to save cost. Chinese buyers have led interest in the bidding process …

China’s Outbound Real Estate Investment Reaches $10B In 2014

Chinese outbound real estate investment increased 25% to reach US$10.1 billion in 2014, making it the number two largest source of such investment among all Asian countries following Singapore, according to a report by global real estate consultancy CBRE Group. For the region, outbound real estate investment had a record year, reaching US$40 billion, up 23% year-on-year.

China’s Large Banks Will Be Resilient In A Property Market Crash

China’s small to mid-size banks would be at greater risk in the extreme scenario that the Chinese property market crashes, given their geographic concentration and weaker customer credit profiles. Larger banks should prove more resilient, says a Standard & Poor’s report. "If property prices drop 20% over the next year, the increase in gross non-performing loans (NPLs) for lending to property developers and construction companies could push up the NPL ratio in their sectors by close to 8% in 2015 …