Temasek to Inject US$1 Billion into China Real Estate Market

Madam Ho is playing contrarian, betting US$1billion against reports that China real estate bubble will burst soon.

http://www.tradingmarkets.com/news/...bn-into-china-real-estate-market-1090642.html

Temasek to Inject USD1bn into China Real Estate Market
Posted on: Thu, 05 Aug 2010 07:06:49 EDT

SHANGHAI, Aug 05, 2010 (SinoCast Daily Business Beat via COMTEX) --

Adjustments China makes in the domestic real estate market provide great opportunities for international capital, which is snapping projects there in the mode of funds.

Mapletree Investments, a unit of Singapore-based Temasek Holdings, said recently that with the completion of the investment of Mapletree India China Fund, it would establish an about USD 1 billion fund to aim at commercial complexes in first-tier Chinese cities. The fund, focusing on both commercial and residential projects, is expected to be triggered within six to 12 months.

"Mapletree has entered the Chinese market for a long period of time but till now, it has not gotten a proper opportunity to stretch out reach to commercial complex projects in Shanghai," Loh Shyh, the company's CEO for China, said in an interview. "It is time for it to take move now as real estate projects in the eastern Chinese municipality are mainly industrial and logistics ones."

According to Mapletree, its core urban complex brand Vivo City will walk out of Singapore for the first time. Vivo City in Xi'an, capital of northwest China's Shaanxi Province, is scheduled to start operation this December. In addition, the Mapletree India China Fund has two projects in Beijing and one in Foshan, Guangdong Province. "The investment totals about USD 617 million, accounting for around 60 percent of the part for China," reiterated Loh. "The remainder is expected to be fulfilled soon as related negations have been started."

Mapletree India China Fund, with a designed investment size of USD 1.16 billion, is launched to aim at development of office buildings, shopping malls, and residential buildings in China and India, two of the world's largest emerging markets. And of the total, 60 percent to 80 percent will be injected into the Chinese market. "The design period of the fund is '5 + 5' mode and when and how it will quit will mainly depend on the market situation," added Loh. "There is possibility for Mapletree to establish Reits in Singapore but it is not the key. The key is the return on investment."

Established in 2000, Mapletree focuses on real estate and capital management in Asia. So far, it has stretched out reach to 10 Asian cities including Singapore. And the capital under its management and custody has exceeded SGD 13 billion.

(USD 1 = CNY 6.77 and USD 1 = SGD 1.35)gl

Time to sell China property. We all know what's Ho Ching's Temasek track record is. We don't call her Ho Jinx for nothing.

Lousy timing lah....Chinese economy already started showing signs of slowdown

Agree that timing is bad.

But then again this is good time to buy up large blocks of downtown condos on the cheap.

Shanghai will become Wall Street of the East. Just the IB activites to finance the corps will be huge. Already some chinese companies are very large and can compare with Dow Blue Chips. Then you factor in retirement/pension products for the Chinese people and that is heck of a lot of money to be managed.

As we all know, office and residential space in NY rents very well. So if you have money, now is good time to go scout out the super prime condos and start offering when you think prices have come down sufficiently. Because future is bright.

Bad Timing..... They are really desperate..

manokie said:

Bad Timing..... They are really desperate..

Click to expand...

Is CENTRAL PROVIDENT FUND one of their stakeholders?, yes, we have to work with aches & pains to 99 to get our money...

Don't worry.U all will get used to it.Using OPM in investments like playing monopoly games.Even if lost everything,will do it again, have "no regrets!!!" LOL

China is in midst of simulating a depreciation of up to 60% in their real estate value !!

Temasek going in within now and 6 months time ?

What a fantastic record of buying high and selling low in everything they did. Temasek must know something that we lesser mortals don't. Amazing.

Even my grandma cannot match them at all. Wonder why she kept buying low and selling high, probably she does not have any scholars nor market experts to advise her.