CIC, Greentown partner for real estate JV
China Investment Corporation (CIC) has teamed with domestic property developer Greentown Group to launch an RMB2 billion ($313.3 million) real estate joint venture that will build office buildings for local government bodies.
According to Caixin, the joint venture will be backed by investors including: The Blackstone Group Blackstone, which committed RMB200 million; Jianyin Investment, which pledged RMB1.2 billion; Greentown Property, with RMB480 million; and Greentown Sunshine, which invested RMB120 million. Each of these investors plan to commit 20% of their totals for early stage use, while the remainder will be invested over the next two years.
Greentown's Deputy Chairman Luo Zhaoming told Caixin that Greentown would work more directly with Jianyin Investment, an investment management firm with RMB20.7 billion in capital, than CIC. The group would collectively focus on infrastructure, healthcare and consulting projects.
The news comes one month after Antony Leung, Blackstone's chairman for Greater China, said the long-term prospects for real estate remain strong due to ongoing urbanization. However, Blackstone Chairman and CEO Stephen Schwarzman added that the firm is unlikely to increase its exposure to the sector in the short term due to high prices.
In September, the company exited its first property investment in China, selling its 95% stake in Shanghai's Channel 1 shopping mall to Hong Kong-based property group New World Development for RMB1.46 billion.
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