International investment firms launch $400m realty fund in China
Amwal Investment, a prominent Omani investment firm and the Cayman Islands-based NCL Fund Management Ltd have launched a $400m real estate fund along with Simon Zhu, a Chinese real estate developer to tap into the thriving Chinese real estate market. The five-year old fund would focus mainly on the residential and commercial properties in some of China’s fast-growing second-tier cities.
The ‘Wanyuan-New China Land Fund’ would be a Cayman Islands unit trust, which would be managed by NCL Fund Management, a Cayman Islands entity. “This a great opportunity for GCC investors to participate in the huge growth opportunities in China,” said Jasser Saleh Al Aulaqi, CEO of Amwal.
The real estate fund which has a minimum subscription of $5 million for institutions and $1 million for individuals, expects returns of at least 15 percent. The fund aims to develop residential, retail and land master-use projects in provincial cities, apart from acquiring partially complete for existing developments from distressed owners in order to attain a cost or time advantage.