Tianjin - The Rockefeller family announced its first private equity investment in China by setting up a joint venture with a local player to develop in Tianjin, showing huge confidence in the Chinese property market.

A parallel fund totaling $2 billion by wholly owned company Rose Rock Capital LLC and Tianjin Innovative Finance Investment Co Ltd will be mainly invested in business real estate development in the Yujiapu Financial District of Tianjin, as well as in the district's infrastructure, culture and education programs, with the construction beginning from the end of 2011.

"China is the most important market we are talking about. We are hoping that the project is going to be the biggest investment in China, it is obviously our priority," said Collin Eckles, the managing partner at Rose Rock.

A first-term raising totaling 5 billion yuan ($777 million) will be finished by the end of 2011 in both renminbi and dollars. The duration of the funds will be seven to nine years.

Eckles said they will start second and third-term raisings but did not provide information on the detailed dates.

Eckles said the Chinese business property market has great potential, and the company "have an ongoing effort to see a lot of projects in China actually, including second-tier and third-tier cities".

"The urbanization process will only intensify the bidding process, and the temporary price down will be just that temporary," Eckles said.

Last year, Rose Rock invested in its first property program in Beijing's Fengtai district with Beijing Xin Hong Ji Sheng Cheng Real Estate Co and Orient Group. Earlier in 2005, the Rockefeller family developed a business property program in Shanghai, in cooperation with Sinolink Worldwide Holding Ltd.

Regarding the Chinese property market, Blackstone Group Greater China Chairman Antony Leung told China Daily earlier that it depends on government policies but its prospects in the long term are good.