Savills Investment Management has formed a joint venture with China Minsheng Investment Capital to develop a series of real estate investment funds.
The firm, which is part of Savills Group and which manages €7.2 billion ($8.2 billion) of assets in Europe and Japan, claims the deal is the first of its kind between a real estate manager and a private Chinese investment company.
The first project from the joint venture is the CMISIM European Investment Fund, which China Minsheng Investment Capital will seed with capital of up to £30 million ($47 million). Savills says the majority of the seed capital will be invested in its Prime London Residential Development Fund II, which invests in mid-market residential developments in London.
"Given the strategic importance of London and its buoyant real estate market, we are pleased that this will be the initial investment focus of our partnership," says Terry Liu, chief executive of China Minsheng Investment Capital.
The firm is a subsidiary of China Minsheng Investment, which was established in Shanghai in 2014 and is organised by the All-China Federation of Industry and Commerce. China Minsheng Investment has a registered capital of 50 billion renminbi ($8 billion).
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