UBS plans to move into commercial property investment in China
Swiss bank plans to widen its investment on the mainland beyond residential while expanding into Australia's agricultural industry
UBS, Switzerland's biggest bank, plans to expand its property investment business with a move into commercial real estate in mainland China.
Office, retail and industrial properties were "where investor demand is certainly moving to" on the mainland, said Trevor Cooke, the head of global real estate for Asia-Pacific at UBS Global Asset Management. "The stock of investment-grade assets in China is growing at about 35 per cent per year."
He said the bank would either team up with a developer or a company with an ability to source existing assets.
Several mainland cities were expected to experience improving rental demand for commercial space on the back of recent regulatory changes, including policies to boost growth in certain areas, CBRE said in a report.
The mainland was among the five most-sought-after markets for retailers looking to open stores this year, the broker said in a separate report.
UBS already invests directly in the mainland's residential property through a joint venture formed in 2008 with Shenzhen-based developer Gemdale. The bank was planning a second residential fund, totalling at least US$350 million, Cooke said.