OVERSEAS investors have remained active in the local real estate market during the first six months of this year with en-bloc deals totaling nearly 10 billion yuan (US$1.47 billion) completed during the period.
According to latest statistics released by leading real estate service provider DTZ, major transactions involving overseas capital from United States, Europe as well as other parts of Asia have hit 9.7 billion yuan in Shanghai in the first half of this year.
"Overseas investors seem to be aggressive about investing in the city's real estate properties as the market is developing and gaining maturity," said Jim Yip, director with DTZ's investment department. "Total transaction amount for the year will likely double from 9.7 billion yuan."
For the whole of 2007, en-bloc deals involving overseas investment totaled 18.33 billion yuan in Shanghai, according to DTZ statistics.
The Blackstone Group from the United States is one of the latest overseas investors to tap the local market. The US alternative asset manager and financial advisory service provider has recently acquired a 90-percent stake in a commercial plaza in Shanghai.
Tidy profit
Hong Kong-based VXL Capital Ltd, which acquired the property on Changshou Road in 2006 for about 585 million yuan, sold the 90-percent share to Blackstone for approximately 1.1 billion yuan, according to earlier media reports. After the deal, VXL Capital will still hold a 10-percent stake in the project.
The Changshou Commercial Plaza, located in Putuo District and comprising two 6-story shopping malls, has a total gross floor area of 40,345 square meters.
Earlier, Hutchison Harbour Ring Ltd, owned by Li Kai-shing, sold a Grade A office building - The Center - on Changle Road for 4.438 billion yuan, or about HK$4.957 billion (US$635 million), to Hawkwind Investment Ltd, an arm under the US investment fund Asia Pacific Land Ltd.