GROSVENOR, a privately-owned group of international property development, investment and fund management businesses, announced yesterday in Shanghai it plans to grow its China portfolio to approximately US$2.5 billion within the next five years.
The UK-based company, which has already invested in three luxury residential properties in Shanghai, also said it will launch its first China fund in the second quarter of this year.
With an estimated size of US$1 billion, the fund will mainly focus on retail property investment in four to six Chinese cities including Shanghai, Beijing, Shenzhen and Chengdu.
"By 2008, our portfolio in Asia Pacific will likely reach US$2 billion and we plan to grow it further to US$5 billion within the next five years, among which 50 percent will be in China," said Nick Loup, managing director with Grosvenor's Asia Pacific operation.
By 2007, Grosvenor managed about US$1.4 billion of assets in the Asia Pacific region with Hong Kong, the Chinese mainland and Japan each accounting for roughly 21 percent, 30 percent and 49 percent respectively.
Luxury residential property and mixed-use development are the company's main focus in the region, although it also invests in shops.
In addition, the company said it expects to add one new development project per year in Hong Kong, Shanghai and Tokyo. The Shanghai project will be developed with a partner this year, company officials said without elaborating.
Grosvenor's local portfolio includes the 99-unit Chester Court at Gubei in Changning District and the 28-unit Grosvenor Place at Lakeville Regency at Xintiandi in Luwan District.
Company officials didn't disclose details of the third property, but industry sources said the company acquired the Chateau Pinnacle Block C in Changning District in January for about 1.2 billion yuan (US$171 million).
Globally, Grosvenor had total assets of nearly US$26 billion by the end of 2007.
Investment in luxury residential properties remained active in Shanghai in the first quarter, with the total amount exceeding 4.1 billion yuan, according to property services provider DTZ's latest quarterly report.
Prominent transactions include Mirae Asset's acquisition of Shama Luxe (Lakeville Regency Block 18) in Xintiandi in February with an average price of 61,000 yuan per square meter.