As reported by Hu Yuanyuan (China Daily)
Falling prices, dwindling transactions and property developers' discount offers may be frightening away individual buyers but seem to be attracting more international investors in the real estate sector.
Blackstone, one of the largest US private equities, in June acquired a commercial project in Shanghai for 1.1 billion yuan ($160.24 million), the first time the company invested in China's property market. Other international funds, said industry insiders, are also looking for mature properties in key cities.
"We have received lots of inquiries from investors in the United States and Europe interested in investing on the mainland following a downward adjustment in property prices," said Malcolm Tam Yuk-cheung, a financial advisory leader at Deloitte China Real Estate Industry.
"They are looking both at opportunities to acquire a stake in a property company and to directly invest in projects," he said, adding these investors typically target an average 15 percent internal return rate before leverage.
Falling prices, dwindling transactions and property developers' discount offers may be frightening away individual buyers but seem to be attracting more international investors in the real estate sector.
Blackstone, one of the largest US private equities, in June acquired a commercial project in Shanghai for 1.1 billion yuan ($160.24 million), the first time the company invested in China's property market. Other international funds, said industry insiders, are also looking for mature properties in key cities.
"We have received lots of inquiries from investors in the United States and Europe interested in investing on the mainland following a downward adjustment in property prices," said Malcolm Tam Yuk-cheung, a financial advisory leader at Deloitte China Real Estate Industry.
"They are looking both at opportunities to acquire a stake in a property company and to directly invest in projects," he said, adding these investors typically target an average 15 percent internal return rate before leverage.
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