Categorized | International

Property Investment Fund Established in China

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In what some consider an unprecedented move, KKR & Co., and Sino-Ocean Land Holdings have formally agreed to establish a joint real estate investment fund in China totaling one hundred and forty million dollars. Both companies have committed seventy million each towards the new fund, giving them equal shares.

In their first announced real estate investment, the two companies will come together to invest over sixty million dollars in a new property being built in northeast China. The new property has been named Chaoyang, and is set to be one of the biggest properties in Dalian.

The news of the joint venture did not come as a complete surprise to many real estate investment analysts, as KKR had previously announced their intentions to increase the size of their China-based real estate teams. This joint venture did just that, and is expected to have a very positive impact on the outlook of the company among shareholders and investors.

There will likely be more investments made by the two companies, and they have each contributed one million dollars to a general partner in the new investment fund.

The move marks what many believe to be KKR’s intentions of divulging more resources into investing in the Chinese real estate market. The company currently owns stakes in a number of different industries in the powerful nation. Their current interests in China reside in farming, cement, financial leasing, and more. This most recent joint venture move continues to expand and diversify the company portfolio, and will play a role in the company’s overall growth.

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About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

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