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China-Focused Private Equity Real Estate Fundraising

by Andrew Moylan

  • 03 Sep 2010
  • RE

Fundraising for private equity real estate funds with a primary focus on China grew significantly between 2004 and 2008. In 2004, just two funds reached a final close, raising an aggregate $0.2 billion.  In 2006, seven private equity real estate funds closed raising $2.2 billion, and nine funds raised $3.0 billion the following year. Fundraising for primarily China-focused funds peaked in 2008, when $5.4 billion was raised by 12 funds.

There was a significant decline in fundraising in 2009, with only one China-specific real estate fund reaching a final close. It is important to note, however, that many funds with a pan-Asian focus will invest capital in China. In 2010 to date, two China-focused funds have closed, raising $0.5 billion. There are currently 11 funds in market specifically focused on China, targeting aggregate commitments of $4.6 billion.

Amongst the largest China-specific real estate funds are Winnington Capital’s Trophy Property Development and Capitaland’s Raffles City China Fund, each of which raised $1 billion of equity. Tishman Speyer China Fund reached a final close on $884 million, while HSBC Specialist Investments’ HSBC-NF China Real Estate Fund raised $700 million.

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