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Pacific Alliance Group makes $22.4m investment in Chinese developer

Through its London-listed, closed-ended investment vehicle, Pacific Alliance China Land, the Hong Kong-based firm has bought a minority position in Chinese developer Wanda Commercial Property.

Pacific Alliance Group, the Asian alternative investment fund management group, has made a $22.4 million investment in a Chinese mixed-use developer, through its AiM-listed, closed-ended investment unit Pacific Alliance China Land.

The Hong Kong-based firm purchased the minority stake in Wanda Commercial Property, an unlisted company which controls more than 21 million square meters of commercial real estate across the country, using only equity.

Patrick Boot, managing director at Pacific Alliance, said: “This investment fits our current strategy to deploy capital in new opportunities in the residential, retail and industrial sectors following PACAL’s restructuring earlier this year.”

He said: “We were able to enter the deal at a relatively low valuation due to unclear market sentiment.”

Boot added that Pacific Alliance China Land planned to exit the investment in the next two to three years when it believes the market will begin to recover.

“We have already seen some improvements in recent months and there are indications that this recovery has a high chance of being sustainable,” he added.

As well as in China, Pacific Alliance has been in acquisitive mood in 2009 elsewhere in Asia. In March, the firm invested approximately $46 million in convertible bonds issued by in Japanese listed fund manager Secured Capital Japan, giving the firm a spring board to distressed real estate investing in Japan.