COLI, ICBC raise $230m for second China property fund

The two companies have committed $40 million each and Dutch pension fund Algemene Pensioen Groep has invested $150 million.

The first Harmony fund was created in March 2010 through a joint venture between COLI and Industrial and Commercial Bank of China (ICBC). The Harmony China Real Estate Fund raised $286 million, including $70 million from Algemene and $120 million from COLI.

That same year, COLI also sold parts of its stakes in three commercial and residential property projects to the joint venture fund. These included 30% stakes in two projects located at Xi'an and Qingdao, and a 32% holding in a Shenyang project. The fund is said to be fully invested.

Despite government efforts to rein in the property market through tighter lending policies, private equity investors remain enthusiastic about the sector's long-term prospects. Last November, PTiFund, a Shenzhen-based private equity firm backed by Hong Kong-listed property developer Top Spring International Holdings, reached a first close of RMB125 million ($19.6 million) for its debut fund. The final target is RMB500 million.

In the same month, CITIC Capital also held a first close on its fourth Chinese real estate vehicle, CITIC Capital China Retail Properties Investment Fund, at $225 million.The fund, which will invest in the retail sector in second- and third-tier Chinese cities, has a target of $600 million.

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• Topics
• Greater China
• Real estate
• Real estate
• Fundraising
• ICBC
• China
• Fundraising
• Real estate
• CITIC Capital
• PTiFund