AG invests HK$330.7m in Shenyang development
United States investment advisory group Angelo, Gordon (AG) has invested HK$330.7million in a mixed-use development project in Shenyang, bringing total mainland investment to date by its private equity arm to just over HK$1billion.
'The reason we are interested in Shenyang is that it is the largest city in northeast China. It has been enjoying double-digit GDP and income growth and yet the real estate market is still relatively immature and has not experienced the tremendous growth seen in other cities,' Wilson Leung, managing director of AG Asia, told Property Post.
'We anticipate there is still significant growth potential in Shenyang,' Mr Leung said.
The private equity arm of the New York-based group raised US$500million in its Asia Real Estate Fund this year and has co-invested in over a dozen projects in Greater China, ranging from retail and residential redevelopments in first-tier cities to residential and mixed-use developments in second-tier cities.
'We have invested around US$150million of equity capital in the country. All our investments have been in partnership with local developers or local real estate operators, which is a core part of our strategy,' said Mr Leung.
The latest investment by the private equity arm will be used to acquire a controlling 58 per cent stake in the Shenyang mixed-used project of Coastal Greenland, a Hong Kong-listed developer that will retain the balance of the equity in the development.
The first phase of the project will have a gross floor area of about 299,440 square metres and will include apartments and shops. The second phase will add a further 178,000 square metres and will include offices, a hotel and shops.
In each of the investments made by the fund, the core strategy will be to invest with experienced local partners, such as Coastal Greenland, in both the development of new real estate assets and redevelopment of existing buildings, according to Mr Leung.
