UBS will launch a new fund to invest USD1bn into the Chinese property market, The Guardian reports. The Swiss bank will partner with Gemdale Corp, a Shanghai-listed developer.
It follows Morgan Stanley, Deutsche Bank and ING Real Estate, which
raised several hundreds of millions of dollars last year for investment
in Chinese housing.
"The focus is on residential, and we are hoping to launch a vehicle,"
Lijian Chen, Head of China Real Estate for UBS Global Asset Management
told The Guardian. The bank will raise about USD300m in equity. "With
leverage", this will give the bank "USD1bn of buying power", Chen said.
UBS invested heavily in the U.S. real estate market in recent years,
and had to write-off more than USD18 bn as a result of the ongoing
sub-prime crisis.
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