Fosun Group raises China’s largest RMB real estate fund

A consortium led by Shanghai-based conglomerate Fosun Group is reported to have raised approximately $900 million for a private equity real estate fund aimed to be used to invest in Chinese real estate developments.

Fosun Group, the Shanghai-based conglomerate has reportedly led a consortium in raising approximately $900 million for a China real estate development fund.

According to a report by the Shanghai Daily, the consortium has raised the capital for the Star Capital Investment Fund, which will be used to invest in retail and residential developments in both first and second tier cities.

The fund, led by Zhao Hanzhong, the former chairman of developer Gemdale Corp’s Shanghai division, is believed is expected to become the largest RMB denominated fund dedicated to real estate with a fundraising target of RMB12 billion (€1.37 billion; $1.8 million) by 2013.

The fund, launched in September, is expected to provide capital for between 20-25 ‘landmark real estate projects’ within five years, the Shanghai Daily reported. The fund is expected to be used to invest in headquarter office buildings as well as retail, residential and hotel developments.

Fosun Group, part of Fosun International, the Hong Kong-listed entity, invests in a number of sectors including Pharmecueticals, mining, steel, retail services and strategic investments as well as real estate development.

For real estate, in addition to leading the management of the Star Capital Investment Fund, the conglomerate also owns Hong Kong listed Shanghai Forte Land, a development firm which is currently developing about 40 schemes a year across the country.