Deutsche Bank AG, which is launching a joint venture to tap China's surging property market, said on Nov 7 that the tie-up's first project will be a $225 million residential project in Zhuhai, which borders the booming gaming enclave of Macau.

RREEF, the property investment arm of Deutsche Bank, has teamed up with two mainland investors and a Macau firm to develop the project, Deutsche Bank's RREEF unit said in a statement.

RREEF will take a 50 percent stake in the joint venture, making it the top shareholder in the company, and Zhuhai Zhongzhu Stock Co. Ltd. and its sister company, Zhuhai S.E.Z. Xihai Group Co., will hold a combined 25 percent stake.

New Genesis International Co. Ltd., a Macanese real estate investor, will also take a 25 percent stake in the venture.
"China is a particularly attractive emerging real estate market given the pace of growth of its economy ... We believe the Zhuhai project is a tremendously exciting first investment," Kurt Roeloffs, Asia-Pacific head of RREEF, said in the statement.

Industry sources said in late October that Deutsche Bank would work with its venture partners to develop several property projects in the mainland, especially in southern China.

RREEF said the planned Zhuhai project on a 106,146 square meter parcel of land would target local middle-class buyers.

Global investors such as Wall Street bank Morgan Stanley see China as a top pick in Asia, along with India and Japan, because the potential for profit more than compensates for the risk from regulatory uncertainties.

However, Beijing has sought to rein in speculative investing in top-tier cities such as Shanghai and Beijing, leading property firms to look to secondary cities.

Source:佚名