China Everbright Holdings, the investment arm of Chinese financial conglomerate China Everbright Group, will launch a real estate fund of between $150 million and $250 million.
The fund will be managed by its newly acquired private equity real estate firm, Alam Group, Annie Shum, director of business development of China Everbright Industrial Investment Holdings, told PERE.
China Everbright’s seed capital commitment to the fund will be up to $50 million. The company expects the fund to be fully invested three years from its initial closing, said Shum. Alam will also be renamed Everbright Alam.
In October, China Everbright bought a 51 percent controlling stake in Alam for $850,000. The investment gave the company a platform to expand its business into the private equity real estate arena, Chen Shuang, chief executive officer and executive director of China Everbright Holdings, said at the time in a statement.
Established in 1997, Hong Kong listed China Everbright's operations include direct investments, asset management and investment, corporate finance and wealth management. The company has offices in Hong Kong, Shenzhen and Beijing.
Alam primarily makes private investments and organises the financing of property development companies, property development projects, hard asset acquisitions and acquisitions of non-performing assets. The other shareholders in Alam include Lehman Brothers Real Estate's latest $3.2 billionfund, LBRE Partners III and Ramsey Quantitative Systems.