Standard Chartered sets its foot in China's real estate sector
Updated: 2006-06-14 14:32
Standard Chartered Private Equity Limited (SCPEL), announced recently it will
invest 50 million US dollars in Shanghai Shimao Group, a leading property
developer.
It is the first time that Standard Chartered has invested in
China's real estate sector, said a Xinhua-run economic newspaper Tuesday adding
that the real estate investment fund Morgan Stanley is also involved in the
deal.
With the steady rise of its economy and rapid urbanization,
China's real estate sector will maintain sustainable and sound development in
the future, the newspaper cited Karam Butalia, global president of SCPEL as
saying.
Located in Shanghai, Shimao Group, one of the largest real
estate developers in China is planning to go public in Hongkong. Shimao has
built residential housing and hotels in nine cities.
"We are confident
in Shimao Group as it has a world-wide distribution network and abundant
capital," said Karam Butalia.
Standard Chartered is seeking other
partners to make other real estate investments in the future, said Chen Fan the
president of its greater China region.
Insiders note that Standard
Charted is a latecomer to China's real estate market, behind Morgan Stanley and
Goldman Sachs which has invested heavily in coastal cities.
New government
regulations announced last month that were aimed at stemming the rise of real
estate prices did not address foreign investments in the sector.
Experts
said that new strict measures are needed to control the inflow of large amounts
of foreign investment in the real estate sector to further cool the overheated
market.
With a history of over 150 years in banking in many of the
world's fastest growing markets, Standard Chartered has an extensive global
network of over 1,200 branches in 56 countries and regions.
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