Century Bridge invests $60m in China residential developments
Sino-US real estate investor Century Bridge Capital has committed $60 million to two joint venture developments in China.
The $62 million, city-center Zhongshan Ouya Project is being developed with Dongfu Real Estate Development. It has a gross buildable area of 641,534 square feet on a site of 160,814 sq ft, and will comprise of 813 residential units.
The $220 million Wuxi East Station Project is being developed with Jingrui Holdings and has a gross buildable area of around 2 million sq ft on a site of 1.11 million sq ft and will comprise of 1714 residential units. It is located in Xidong New City - a growing neighborhood of 150,000 residents - in the Xishan industrial district of Wuxi.
"Both are in-fill sites located in vibrant submarkets within cities experiencing dynamic economic expansion," said Tom Delatou, CEO of Century Bridge, in a statement "Like all the markets we target, they are also experiencing increasing levels of affordability, with annual disposable income growth exceeding home price growth."
Zhongshan has had among the lowest price-to-income ratios in China for the last five years with per capita income growth in excess of 9% outpacing price growth of 5.5% on an annual basis. Wuxi, meanwhile, is said to have one of the highest GDP per capita in China with personal incomes have growing around 11.6% every year in the past five years compared with residential price growth of 6.5%.
Real estate and infrastructure demands in China's second- and third-tier cities continue to be driven by rapid urbanisation. According to a recent report by KPMG, there are around 700 million people living in China's cities. An additional 300-400 million rural residents will relocate to urban areas by 2030, resulting more than one billion urban dwellers in China.
Century Bridge Capital has office in Beijing and Dallas, Texas. It focuses exclusively on investment in the middle-income, residential real estate sector in second- and third-tier cities. Its China-focused fund, Century Bridge China Real Estate Fund, has over $170 million of total committed capital from 10 global institutions.
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