UK-based Savills Investment Management and China Minsheng Investment Capital formed a joint venture that will develop funds and investment vehicles tapping Chinese investors.
The new venture is set to launch a real estate fund called CMISIM European Investment Fund that will have a seed capital of 30 million pounds ($47 million). The new fund aims to deliver a 15% return to investors, according to a statement from Savills. Most of the seed money will be invested in Savill’s Prime London Residential Development Fund II as well as in other UK properties.
The Chinese firm, which will also invest another 20 million pounds into Savills’ PLRDF II, plans to use the venture as a launching pad to build a global portfolio, said its CEO Terry Liu.
“Given the strategic importance of London and its buoyant real estate market, we are pleased that this will be the initial investment focus of our partnership. Our strategy is to build a globally diversified portfolio and in SIM we have the ideal partner to make this happen,” said Liu.
China Minsheng Investment Capital is a subsidiary of China Minsheng Investment Corp, a Shanghai-based private investment firm with a registered capital of 50 billion yuan ($8.1 billion).
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