CBRE closes China fund on $470m

After a brief interruption following the takeover of ING, the global real estate investment manager has held a final close on its first China-focused fund.

CBRE Global Investors, the private investment arm of the global property services firm CBRE, has held a close on its second China-specific fund some three years after its original launch.

First launched in 2011 under the banner of ING Real Estate Investment Management, the fundraising effort was interrupted later that year when the Dutch firm was acquired by CBRE.

CBRE GI is expected to target opportunistic investments in mainland China, with a focus on mixed-use and residential-anchored development projects across Tier 1, Tier 2 and Tier 3 cities. 

The firm is planning to have domestic joint venture partners for each investment and altogether the fund should have purchasing power of approximately $1 billion. 

CBRE GI has been investing in China since 1996, and the addition of ING’s Asia platform brought CBRE’s Asia portfolio to $5.5 billion altogether. 

Just this March, the firm secured a $200 million mandate from Asian insurers to invest outside of Asia, but it has not announced many direct investments in China over the past few years.

CBRE GI would not offer details about its fundraising. However, in a statement the firm said that it sees good opportunities in China underpinned by the country’s demographic and economic fundamentals, which are being further enhanced by the current restructuring and distress in the property sector. 

“We look forward to capitalizing on the opportunities in the market as a result of the current market correction and consolidation,” added Richard van den Berg, country head for greater China, in the statement.