UBS Invests in China Real Estate
April 28th, 2008
UBS, the Swiss bank will launch a new fund to invest USD 1 billion into the Chinese property market with Gemdale Corp, a Shanghai-listed developer.
According to Chen Lijian—the Head of China Real Estate for UBS Global Asset Management, UBS will focus on residential and also hopes to launch a vehicle. The bank will raise USD 300 million in equity, which will give it USD 1 billion of buying power.
Following Morgan Stanley, Deutsche Bank and ING Real Estate that raised several hundreds of millions of dollars for investment in Chinese housing last year, UBS wants to write off more than USD 18 billion on American real estate market due to the ongoing sub-prime crisis.
Popularity: 6%