CITIC plans investment trio in Shanghai and Dalian

China-focussed private equity firm is in discussions to buy the first three assets for its newly launched CITIC Capital China Real Estate Investment Fund III, following the close of the $400m fund last month.

China-focused private equity firm CITIC Capital will acquire two office projects in Changfeng, Shanghai, and develop a residential project in Dalian, said Stanley Ching, managing director and head of CITIC Capital’s property wing, in an interview.

The investments were made out of Capital China Real Estate Investment Fund III, with an average equity size of between $30 million (£20.8 million) and $50 million for each project, according to Ching. 

The projects were the fund’s first investments in the pipeline and the timing was appropriate as falling property prices in China could deliver even more buying opportunities, added Ching.

The fund, which closed on $400 million this January will invest in development projects in first- and second-tier cities; commercial projects, with a focus on distressed ones; local developers; and Hong Kong-listed Chinese real estate companies.

CITIC Capital manages over $1.6 billion in capital in businesses such as private equity, real estate, mezzanine and debt finance, asset management and special situations.