JPMorgan closes $600m China fund

The fund, targeting real estate developments in the Greater China regions of China, Hong Kong, Macau and Taiwan, is the firm’s second Asia-focused vehicle.

JPMorgan Asset Management (JPMAM) has closed its JPMorgan Greater China Property Fund with more than $600 million (€384 million) in capital commitments. The fund was raised from institutional and high net worth investors in the US, Asia, Europe and the Middle East.

The vehicle will focus on property investments in Greater China, capitalizing on the region’s continued economic growth and rising incomes – which have created strong demand for real estate across property types – along with joint venture opportunities with local developers.

Greater China is one of the “most dynamic and exciting economic regions,” Joe Azelby, global head for JPMAM’s real estate and infrastructure unit, said in a statement. Real estate developers and operators in China are looking for joint venture partnerships to sustain their growth, he added.

The fund, which will invest in real estate projects in China, Hong Kong, Macau and Taiwan, is targeting the development of new properties investing across property sectors including the office, residential, retail and hospitality sectors. It will be led by a team of 18 investment professionals, based in Hong Kong, headed by David Chen, chief investment officer and head of JPMAM Real Estate in Asia and Douglas Sung, head of portfolio management for JPMAM Real Estate in Asia.
The vehicle has already closed on three investments including an office and retail development in central Shanghai, a residential development in Wuxi and a “convertible debt opportunity” with a residential developer in Southern China. The fund also has a “robust investment pipeline” with other joint venture projects “under final considerations,” according to Chen.

JPMorgan Greater China Property Fund is the firm’s second Asia-focused private equity real estate fund. In 2006, the firm closed on its India Property Fund with more than $360 million in capital.