BIZCHINA / Overseas Investment
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.
(For more biz stories, please visit Industry Updates)
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