Recent reports revealed that Istithmar, the state investment firm of Dubai, is considering plans to increase investments in China following the derailing of purchase of US ports facilities last year as a result of US security concerns.
The company’s Chief Investment Officer, David Jackson, stated in a recent interview that Istithmar had plans to invest hundreds of millions of dollars in the real estate industry of emerging markets over the next few years, according to Reuters.
Jackson added that Istithmar, which recently began purchasing high-profile real estate assets such as London’s One Trafalgar Square and New York’s prestigious 280 and 230 Park Avenue buildings, might also invest hundreds of millions in China's mortgage market, considering it was presented with the right opportunity.
The firm is reportedly investing between $800 million and $1 billion annually, and has plans to use third-party funding this year, an unprecedented move for Istithmar.
"I would say that we're probably inclined to accelerate (investment) to go to places like India, like China, like eastern Europe and Turkey,” said Jackson, explaining the company’s decision to act with caution in terms of investments in the US following the fallout over the ports deal last year.
Istithmar plans to open an office in China this coming September in order to pursue opportunities in the Chinese mortgage market, real estate, as well as the consumer sector.
"We see an enormous opportunity in the mortgage securitization side as well as the mortgage origination side," he said. "If someone came to me and said they wanted us to invest $200 million, or even more, in a mortgage opportunity in China we would probably do it.
