Savills Investment Management has entered into a joint venture with China Minsheng Investment Capital Co to develop and promote a series of funds and investment vehicles to invest in global real estate markets.
The joint venture is the first of its kind between an international real estate investment manager and a private Chinese investment company.
The first major initiative resulting from the joint venture is a new real estate fund, CMISIM European Investment Fund, in which CMIC is the cornerstone investor with seed capital of up to £30m. The fund aims to deliver a net return to investors of 15%.
The majority of the seed capital in the fund will be invested into Savills Investment Management’s Prime London Residential Development Fund II and the remaining amount will be used to invest in other UK projects.
Upon successfully raising capital from other investors from China and internationally, the joint venture will expand its investment into other markets in Europe and further afield.
Launched in 2014, PLRDF II capitalises on the shortage of housing stock in London by targeting mid-market residential developments in select locations where the supply/demand imbalance is most acute.
