GE Real Estate has made its first investment in China by sinking $20 million into the newly formed CITIC Capital Vanke China Property Development Fund. The company is working with China Vanke Co., the largest publicly listed real estate developer in China, and the fund will invest $100 million to $150 million in residential real estate in specified economically developed regions in China. This includes the Pearl River Delta Region, the Yangtze River Delta Region, the Pan Bohai Region and other inland cities.
Michael Pralle, president and ceo, said GE is working with the most reputable companies in China. “Investing in residential properties is the right entry strategy, because it is the most robust and liquid commercial real estate segment in China,” he added. The venture will also allow GE to learn more about the market and establish a presence in different areas of the country, said Mark Hutchinson, president of GE Real Estate Asia-Pacific.
The fund will also explore investment opportunities in other asset types throughout China, including retail, hotel, office and industrial properties with a pipeline of deals totaling several hundred million dollars, Pralle said.