Asian luxury property investment fund Grosvenor Land Property Fund has expanded to US$80 million by introducing new investors.
John So, chief executive of Grosvenor Land Asset Management, the manager of Grosvenor Land, said a Dutch pension fund and an Asian property company had joined the fund.
He said Hongkong Land and Grosvenor Estate Holdings' interests in the fund had been diluted to a combined 37.5 per cent, but they would continue their role in day-to-day management of the fund.
The fund was established by Hongkong Land and Grosvenor Estate, a British property giant, in late 1999 with US$30 million. It has been active in Hong Kong's luxury market since, with the latest purchase being three townhouses at Rosecliff in Tai Tam.
Mr So said that after introducing strategic investors to the fund, it also would bring in smaller investors with wider backgrounds.
He said the fund aimed to expand to between US$150 million and US$250 million. It planned to use 50 per cent of bank borrowings and target an internal rate of return at 20 per cent,.