Chinese language - Carlyle sets foot in China's property market

BIZCHINA / Overseas Investment

Carlyle sets foot in China's property market

(Xinhua)
Updated: 2006-11-29 13:59

New government regulations on foreign investment in China's real estate
market haven't deterred the U.S. private equity firm the Carlyle Group
from buying more than 100 million U.S. dollars worth of property in
Shanghai, reports Tuesday's Shanghai Securities News.

The American company spent about 120 million U.S. dollars to buy 110
villas in Minhang District of Shanghai in its first purchase in the
Chinese mainland's property market, said the report.

The report quoted an anonymous insider close to the deal as saying that
the luxury housing, located in Kunyang Road near an international tennis
center, was part of a program named the "Zhongfang Forest Villa",
developed by Shanghai Zhongfang Real Estate Co., Ltd.

Citing statistics from the world's leading property advisor, Savills, the
newspaper said that increasing demand had pushed up the rents for villas
in Shanghai in the third quarter this year, with monthly rents in Puxi
climbing to 23.6 U.S. dollars per square meter.

Carlyle intends to lease the villas in pursuit of long-term returns, said
the report.

Investment opportunities in China's real estate market and the expected
appreciation of the yuan, mean the sector remains attractive to foreign
capital, said analysts.

The report cited an unidentified analyst saying the Carlyle Group was
cautious about investing in China's property market although it
established a 410 million U.S. dollars fund in 2005 targeting the Asian
real estate market.

The Chinese government in July placed new restrictions on foreign capital
in the country's real estate market, which were aimed at reining in
galloping fixed assets investment and soaring housing prices in Chinese
major cities.

(For more biz stories, please visit Industry Updates)

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