Several high profile business figures from the UAE met with representatives of Chinese real estate fund management company New China Land Fund Management (NCL), to discuss opportunities to invest in a $400 million Chinese real estate investment fund.
Representatives of the NCL came to Dubai to discuss details of Wanyuan, the new fund which is targeting to close in September 2006, and aims to post a net investor returns of more than 15 per cent per year during a five-year investment life, according to Khaleej Times.
The fund will implement two strategies, development of primarily residential, retail, and land master-use development and the acquisition of partially complete or existing projects.
Minimum institutional investor commitment is $5 million, while individual investors can invest from $1 million, with a management fee of 2.5 per cent. Based on past experience, fund managers predict even greater performance than the current target.
“We are focusing on second-tier cities where demand is high and competition minimal. Up to 20 million people are migrating from the countryside to China's cities each year to meet the demand for new jobs, and this migration translates into tremendous demand for new housing,” said Andrew Oksner, President of NCL.
