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Chinese real estate fund begins investment roadshow in UAE

Wanyuan — New China Land Fund is a Cayman Islands unit trust which will be managed by NCL Fund Management Ltd, a Cayman Islands corporation. The Bank of Bermuda, a wholly-owned subsidiary of HSBC is the fund trustee.

The fund is targeting to close in September 2006 and aims to post a net investor returns of more than 15 per cent per year year during a five-year investment life. However, according to the fund managers, past experience of the principals, and current market conditions indicate performance in excess of this target. Minimum institutional investor commitment is $5 million, while individual investors can invest from $1 million, the management fee is 2.5 per cent.

“We are focusing on second-tier cities where demand is high and competition minimal. Up to 20 million people are migrating from the countryside to China's cities each year to meet the demand for new jobs, and this migration translates into tremendous demand for new housing,” said Andrew Oksner, President of NCL.

The fund will implement two real estate investment strategies to maximise profit and limit risk; development of primarily residential, retail, and land master-use development in provincial capitals and major metropolitan areas; and the acquisition of partially complete or existing projects from distressed owners in order to obtain a cost or time advantage over any competition.

The roadshow which was held in Oman and UAE will also be held in Kuwait, Qatar and Bahrain.