Foreign Capitals Regard Prospects of the Commercial Real Estate in China
During the Chinese People's Political Consultative Conference National People's Congress, the hot topic of the new real estate regulation policy has no effect on the commercial real estate. In recent years, commercial real estate has a quick development. Without the restrictions of the regulation policies, commercial real estate has blowouts continuously. Foreign capitals obviously have found the business opportunities at the commercial real estate of China. Recently, the U.S. private equity firm Warburg Pincus became a shareholder of a commercial real estate company, Beijing Tongchang Shengye Assets management Co., Ltd. (T&C Group). Tangyao, an elevated manager from the group expressed that the Warburg Pincus regarded the prospects of the T&C Group is reasonable. In three years, T&C Group has served commercial real estate projects worth more than 190 billion Yuan. The group has a database including 150 shopping centers and over 10,000 brands in 36 cities around the country. All these representations show the confidence of the foreign capitals. They are sure to make a profit at the commercial real estate market of China. Joseph Gagnon, Managing Director of Warburg Pincus, has made it clear that the commercial real estate industry in China continues to be optimistic. Xie ChaoYing, deputy of National People's Congress and the director of the Hunan Province Economic and Information Technology Commission, told reporters that we should pay attention to the foreign capitals. According to the publicly available data, since the third quarter of last year, the foreign has took part in many large real estate transactions. The proportion of the participation has been increased to 36% from 16% in the second quarter of last year. However, the transaction mainly is commercial real estate projects. T&C Group has fine strategic advisory relationships with all levels of local government.
Tang Yao told reporters that in recent years, T&C Group has set up regional branches in the southwestern region of Chongqing, East China, and Shanghai continuously. In three years time, In three years time, In three years time, the company served nearly 16 million square meters of commercial projects. T&C Group has served nearly 16 million square meters of commercial projects, and also has become a strategic partner with many famous real estate developers, such as Vanke, Sino-Ocean etc. These are the basis for the T&C Group to be a investment organization and real estate developer. Warburg Pincus prefers the foundation laid by the group at the commercial real estate field. Besides, the booming commercial real estate in China is another important reason. According to a global survey, international investors favour three countries. They are the United States, Turkey and China. Zhang Xin, Co-President of SOHO China said residential real estate development is coming to an end. But she predicts the commercial real estate in Beijing and Shanghai will be expected to sustain growth. It is reported that Warburg Pincus manages assets of over 30 billion U.S. dollars. Warburg Pincus invests more than 125 companies. Since 1994, Warburg Pincus has invested many different industries including 7 Days Inn, Gome, Harbin Pharmaceutical Group, etc. Since 2003, the total investment of Warburg Pincus is about 3 billion US dollars. But there are also different voices. In the last five years, the investment on commercial real estate is far more than the growth in retail sales. Risks are also increased.
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