Skip to main content

Advertisement

Advertisement

UBS plans China property expansion with move into commercial assets

SYDNEY — UBS, Switzerland’s biggest bank whose largest shareholder is Singapore’s GIC, is planning to expand its Chinese property investment business with a move into commercial real estate.

SYDNEY — UBS, Switzerland’s biggest bank whose largest shareholder is Singapore’s GIC, is planning to expand its Chinese property investment business with a move into commercial real estate.

Office, retail and industrial properties are where investor demand is certainly moving to in China, said Mr Trevor Cooke, head of global real estate for Asia-Pacific at UBS Global Asset Management. “The stock of investment grade assets in China is growing at about 35 per cent per year,” he said in an interview in Sydney.

Several cities in China are expected to experience improving rental demand for commercial space on the back of recent regulatory changes, including policies to boost growth in certain areas, said property consultancy CBRE in its Asia Pacific Office MarketView report. China is among the five most sought-after markets in the world for retailers looking to open stores this year, it said in another report.

UBS already invests directly in Chinese residential property through a joint venture formed in 2008 with Shenzhen-based developer Gemdale. The bank is planning a second residential fund, with an initial close of about US$100 million (S$125 million) and a total of at least US$350 million, Mr Cooke said. “It’s hard not to acknowledge the macro-sentiment around residential property in China right now — the concerns about a Chinese bubble. But that just puts the emphasis on the asset management credentials.”

The value of homes sold in China fell about 11 per cent to 446.1 billion yuan (S$90.7 billion) last month from May 2013, calculations based on National Bureau of Statistics data showed. BLOOMBERG

Read more of the latest in

Advertisement

Popular

Advertisement

Stay in the know. Anytime. Anywhere.

Subscribe to get daily news updates, insights and must reads delivered straight to your inbox.

By clicking subscribe, I agree for my personal data to be used to send me TODAY newsletters, promotional offers and for research and analysis.