Socam launches distressed assets fund

Shui On Construction and Materials (Socam) has formed a private equity fund with several institutional investors to acquire distressed assets on the mainland with an investment of US$400 million. The fund, in which Socam has a 50 per cent stake, will invest in 'special situation' real estate projects in high-growth second-tier cities, focusing on residential developments. 'Special situation' projects is a euphemism for distressed assets. Philip Wong, chief executive of Socam, said austerity measures implemented by Beijing had prompted the decision to create the fund, called SoTan China Real Estate.