RREEF, the real estate investment arm of Deutsche Bank, will invest US$225 million in a mass residential project in Zhuhai, various Chinese news publications reported.
RREEF will have a 50 per cent stake in the project – its first in China – that will offer affordable apartments to the middle class. The three-year project will comprise 2,000 apartments in about 20 towers on a plot as large as 106,146 sq. m, according to the reports.
Other investors in the project include Macau-based real-estate investor New Genesis International Co. with a 25 per cent stake and local property developer Zhuhai Zhongzhu Stock Co. with a 20 per cent interest.
According to China’s Ministry of Construction, foreign investors spent a total of US$3.4 billion purchasing properties in China in 2005. There were 2119 Sino-foreign real estate joint venture projects worth US$19.4 billion in contracted foreign direct investment and US$5.4 billion in utilized FDI. The report claimed that foreign investors spent US$4.5 billion buying properties in China in the first quarter of 2006, more than they spent in the whole of 2005.
