Property investment manager Savills Investment Management and China Minsheng Investment Capital Co (CMIC), China’s first national-level private investment company, have entered into a joint venture.
The agreement covers developing and promoting a series of funds and investment vehicles to invest in global real estate markets. It is the first of its kind between an international real estate investment manager and a private Chinese investment company.
“Our joint venture partnership with Savills Investment Management represents an important step in establishing a global real estate investment platform," said Terry Liu, CEO of China Minsheng Investment Capital.
"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. Our strategy is to build a globally diversified portfolio and in SIM we have the ideal partner to make this happen.”
The first major initiative resulting from the joint venture is a new real estate fund, CMISIM European Investment Fund, in which CMIC is the cornerstone investor with seed capital up to £30m.
The majority of the seed capital in the Fund will be invested into Savills Investment Management’s Prime London Residential Development Fund II and the remaining amount will be used to invest in other UK projects. The fund aims to deliver a net return to investors of 15%.
“We are delighted to have formed this ground-breaking joint venture with CMIC," said Justin O’Connor, CEO of Savills Investment Management. "Our inaugural fund, CMISIM European Investment Fund, is well-placed to deliver superior risk adjusted returns.”