Gateway Capital wants to invest in 2b yuan development in exclusive district
United States property fund Gateway Capital is in talks to join in a multibillion-yuan redevelopment project in Beijing's Sanlitun district, an area known for its embassies and nightlife, as the central government's efforts to curb property speculation force mainland developers to seek outside funding.
The fund management firm, which has set aside US$200 million to invest in property in Greater China, recently signed a memorandum of understanding with the developer of the Sanlitun area, Beijing Guo Feng Real Estate, to buy a site in the northern part of the proposed area, sources said.
The deal's cost is estimated at two billion yuan. If it proceeds, it would be the fund's first property investment in the city, they said.
'The developer wants to sell the site to fund the entire redevelopment,' said one source.
The move comes as mainland developers turn to foreign investors for capital in the wake of government moves to restrict lending for property development.
