New government regulations on foreign investment in China's real estate market haven't deterred the U.S. private equity firm the Carlyle Group from buying more than 100 million U.S. dollars worth of property in Shanghai.

The American company spent about 120 million U.S. dollars to buy 110 villas in Minhang District of Shanghai in its first purchase in the Chinese mainland's property market.

The luxury housing, located in Kunyang Road near an international tennis center, was part of a program named the "Zhongfang Forest Villa", developed by Shanghai Zhongfang Real Estate Co., Ltd.

Increasing demand had pushed up the rents for villas in Shanghai in the third quarter this year, with monthly rents in Puxi climbing to 23.6 U.S. dollars per square meter. Carlyle intends to lease the villas in pursuit of long-term returns.

Investment opportunities in China's real estate market and the expected appreciation of the yuan mean the sector remains attractive to foreign capital.

The Carlyle Group was cautious about investing in China's property market although it established a 410 million U.S. dollars fund in 2005 targeting the Asian real estate market.

The Chinese government in July placed new restrictions on foreign capital in the country's real estate market, which was aimed at reining in galloping fixed assets investment and soaring housing prices in Chinese major cities.

Source:佚名