Global announces new China acquisition

Last month only, Global Asia Real Estate Fund had announced the successful closure of two investments; one in China and another in India.

Sameer A. Al Gharaballi, Executive Vice-President at Global, said, "this investment will provide the fund an excellent opportunity to invest in the development of a mixed usage project consisting of residential and retail space in Changzhou city, China.

He added that this investment is a joint venture with a Chinese real estate development and construction company.

Sameer said " A significant driver of our decision to invest in Changzhou relates to the fact that in recent years, there has been a strong demand in the real estate sector, especially in the residential segment."

Changzhou city is strategically located in the Yangtze River Delta and it will benefit from the booming economy in the area. The site selected for the construction is easily accessible to all the supporting facilities.

Rakesh Patnaik, Head of Real Estate Funds at Global, revealed that the total cost of the project is approximately $62 million in which the fund is contributing $11 million as equity into the project.