Landsea Green Properties and Citic Capital to cooperate on urban renewal investment management
Landsea Green Properties and Citic Capital Holdings will come together in a strategic cooperation to establish a platform for investment management of urban renewal properties in China at a budget of 20 billion yuan.
“The parties intend to cooperate to establish the platform to carry out inventory renewal investment management business in first-tier cities and strong second-tier cities,” according to a Landsea statement filed with the Hong Kong stock exchange on Thursday.
The parties will jointly find project investment opportunities in core districts in selected second-tier cities ranging from residential, serviced apartments, offices, to hotels and malls, the statement said.
It is proposed that the parties will contribute equal amounts of capital to the platform.
“Taking into account the gradual decrease in new land supply in first-tier cities and the increase in
building inventories and trading volume in second-hand residential properties, the company
believes that there would be a promising market for urban renewal and old building rehabilitation,” it said.
Landsea, which develops property in China and the United States, believes the platform provides a valuable opportunity for the group to further tap such markets and to leverage the resources of the company and Citic, to the benefit and advantage of each party.
Citic Capital, established in 2002, manages funds of more than US$7 billion. Its real estate investment division more than US$1.5 billion in funds and has invested in more than four million square metres of projects involving residential, retail commercial, offices and industry parks.